The UK property market is expected to gain momentum in 2025, with sales and prices both on the rise, according to Zoopla.
Sales are predicted to increase by 5%, reaching 1.15 million transactions, following a strong 2024 that saw 1.1 million completions, 10% higher than the previous year.
House prices are expected to grow, with a projected 2.5% increase next year and a total rise of 7.5% over the next three years. However, growth is unlikely to be uniform across the UK. The Midlands, northern England, Scotland, and Wales are anticipated to outperform the national average, while southern England may experience slower progress.
Currently, the average UK house price stands at £267,200, reflecting a 1.5% rise over the past year. Improving household incomes and falling mortgage rates have boosted affordability, helping more people enter the housing market.
Several factors continue to shape the market, including an ageing population, higher running costs, and evolving work patterns. First-time buyers remain a key part of the market, but existing homeowners looking to move may need to adjust their plans or explore areas offering better value.
A stamp duty change coming next April is also said to drive buyer activity. Many first-time buyers are rushing to secure properties before the shift takes effect, suggesting a busy start to the year for the property market.
In summary, 2025 looks promising for the UK housing market, with rising sales and steady price growth likely to define the year ahead.