The Zoopla House Price Index has just been released.
Key Market Insights
- New sales agreed have increased by 12% in the first four weeks of 2025 compared to the same period in 2024, marking the strongest start in three years.
- Homes for sale are up 10% from last year, indicating a higher property supply.
- The average UK house price stands at £267,700, a £5,200 increase over the past year, following a £2,400 drop in 2023.
Stamp Duty Changes Driving Activity
- Buyers are likely **rushing to beat the stamp duty hike on April 1, 2025.
- First-time buyers: “nil rate” band reducing from £425,000 to £300,000.
- The Northern Ireland housing market saw the highest price increase (7.7%), while Eastern England experienced the smallest (1.0%).
Price Inflation and Market Outlook
- House price inflation was 2.0% in December 2024 compared to a year ago.
- Zoopla suggests the upturn in prices may begin to level out as mortgage rates rise and buyers have more property options.
- The North/South divide in house price inflation is expected to continue in 2025.
- Market activity in early 2025 is stronger than in 2024 and 2023, which bodes well for the year ahead.
Looking Forward
- Sales volumes and prices are likely to see moderate growth throughout 2025, with inflation kept in check due to rising mortgage rates.
- Regional variations will persist, with the North likely to see stronger growth compared to the South.
Regional Variations in UK Job and House Price Growth
Job Growth Trends
- North West, Scotland, and Northern Ireland have seen faster job growth over the past two years compared to regions in the south of England.
House Price Growth
- Fastest Price Growth:
- Wigan (North West): 5.6%
- Motherwell (Scotland): 4.9%
- Slower Price Growth:
- Southern England (London, South West, South East, Eastern regions) has experienced slower house price growth with prices rising by less than 1.5% over the last 12 months.
- In London, house prices have risen by less than 1.5% over the last year.
Housing Affordability & Supply
- In southern England, rising incomes have not yet helped to significantly improve housing affordability due to already high house prices.
- Increasing housing supply means buyers have more homes to choose from, which is helping to keep price inflation in check.
Outlook for 2025
- The north-south divide in house price inflation is expected to continue in 2025, with regions in the North seeing stronger growth compared to southern areas.
- Rising mortgage rates and increased housing choice are likely to slow the overall upturn in prices, keeping price inflation at moderate levels in the year ahead.
House price change over 2024 by region and country
| Region/ country | Avg. price Dec 2023 | £ change over 2023 | % change over 2023 | Avg. price Dec 2024 | £ change over 2024 | % change over 2024 |
| N Ireland | £166,400 | £3,900 | 2.4% | £179,200 | £12,800 | 7.7% |
| N West | £193,500 | £100 | 0.1% | £199,700 | £6,200 | 3.2% |
| N East | £142,000 | £600 | 0.4% | £146,100 | £4,100 | 2.9% |
| Scotland | £162,300 | £2,600 | 1.6% | £166,900 | £4,600 | 2.8% |
| Wales | £201,400 | -£1,200 | -0.6% | £206,800 | £5,400 | 2.7% |
| Y & Humber | £184,800 | -£100 | -0.1% | £189,700 | £4,900 | 2.7% |
| W Mids | £227,800 | -£300 | -0.1% | £232,900 | £5,100 | 2.2% |
| E Midlands | £226,900 | -£3,200 | -1.4% | £230,600 | £3,700 | 1.6% |
| London | £527,900 | -£7,200 | -1.3% | £535,100 | £7,200 | 1.4% |
| S West | £310,300 | -£6,500 | -2.1% | £314,000 | £3,700 | 1.2% |
| S East | £382,100 | -£7,800 | -2.0% | £386,200 | £4,100 | 1.1% |
| Eastern | £333,800 | -£8,700 | -2.5% | £337,100 | £3,300 | 1.0% |
| UK | £262,500 | -£2,400 | -0.9% | £267,700 | £5,200 | 2.0% |
Source: Zoopla House Price Index
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