The UK property market is showing signs of steady growth as both buyers and sellers become more active. The North West continues to stand out, experiencing some of the fastest house price increases in the country.
Recent data indicates that the average house price in the UK has increased by 2% compared to last year. Alongside this, the number of property sales has risen by 12%, marking the fastest rate of growth seen in two years. Buyer demand has also strengthened, with a 13% increase in interest from those looking to purchase property.
Additionally, more properties are entering the market, with the number of homes for sale up by 10% from the previous year. This makes it the busiest January for the housing market in seven years, with estate agents having an average of 31 properties available per branch.
Strong Buyer Interest Despite Challenges
Despite concerns around stamp duty adjustments and mortgage rate fluctuations, interest in purchasing property remains high. A growing number of both renters and homeowners are planning to buy within the next two years. Around 17% of homeowners are considering moving, while the proportion of renters aiming to buy has risen from 18% to 22%.
At the same time, more homeowners who are not yet ready to move are closely watching the market, with this group increasing from 21% to 25%. This suggests a rising level of engagement and potential for future transactions.
North West Leads in House Price Growth
House price growth has been strongest in the North West, where prices have risen by 3.2% over the past year. Wage growth, which has been increasing at over 5% annually, has improved affordability in many regions. However, more expensive areas are seeing slower growth due to higher mortgage rates and cost-of-living pressures.
In the North West, Wigan has recorded one of the highest house price increases at 5.6%, while Motherwell in Scotland has also seen notable growth at 4.9%. In contrast, areas in the South of England have experienced much slower price rises, with some locations remaining below 1.5%. However, increased demand from first-time buyers in London and the South East may lead to gradual price increases in the near future.
Overall, the UK property market remains stable and resilient. While affordability continues to be a key factor, demand for housing remains strong, and market conditions suggest further growth in the months ahead.