Mainstream housing market – where’s hot and where’s not?

Mainstream housing market – where’s hot and where’s not?


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The 2025 sales market has got off to a stronger start than in 2024 or 2023 with buyer demand up 13% and 10% more homes for sale.

That’s the verdict of Zoopla which says rising sales are supporting UK house price inflation which is 2% in the year to December 2024, compared to a fall of 0.9% a year ago.

House price inflation ranges from 7.7% in Northern Ireland and 3.2% in the North-West, to just 1% in the Eastern region

The portal says the removal of stamp duty relief from April 2025 has boosted first-time buyer demand by over a third in price bands where stamp duty costs will rise the most

The appetite to move home now or in the next two years is greater than a year ago with 22% of renters and 17% of homeowners looking to buy

This all means that 2025 is starting with the highest number of homes for sale (31) per estate agency branch for seven years. 

House prices have returned to growth across the UK on rising sales.  Prices are rising most quickly in more affordable areas with above-average growth in the number of jobs.

Data from the ONS shows that the North West region of England, Scotland and Northern Ireland have recorded faster growth in jobs over the last two years compared to regions in southern England. Locally, prices are rising fastest in Wigan (5.6%) and Motherwell in Scotland (4.9%). 

House prices are rising more slowly in southern England where prices are above average and it is taking longer for rising incomes to help reset housing affordability. House prices have risen by less than 1.5% in London, the South West, South East and Eastern regions of England over the last 12 months. 

There are signs that the recent upturn in prices is starting to level out as mortgage rates drift higher and buyers have plenty of homes to choose from. This will keep price inflation in check over 2025 but the current north-south divide in home price inflation is expected to continue over the year ahead.   

House price change over 2024 by region and country 

Region/ countryAvg. price Dec 2023£ change over 2023% change over 2023Avg. price Dec 2024£ change over 2024% change over 2024
N Ireland£166,400£3,9002.4%£179,200£12,8007.7%
N West£193,500£1000.1%£199,700£6,2003.2%
N East£142,000£6000.4%£146,100£4,1002.9%
Scotland£162,300£2,6001.6%£166,900£4,6002.8%
Wales£201,400-£1,200-0.6%£206,800£5,4002.7%
Y & Humber£184,800-£100-0.1%£189,700£4,9002.7%
W Mids£227,800-£300-0.1%£232,900£5,1002.2%
E Midlands£226,900-£3,200-1.4%£230,600£3,7001.6%
London£527,900-£7,200-1.3%£535,100£7,2001.4%
S West£310,300-£6,500-2.1%£314,000£3,7001.2%
S East£382,100-£7,800-2.0%£386,200£4,1001.1%
Eastern£333,800-£8,700-2.5%£337,100£3,3001.0%
UK£262,500-£2,400-0.9%£267,700£5,2002.0%

Source: Zoopla House Price Index

The Budget confirmed that temporary reliefs from stamp duty will end in April 2025 in England and Northern Ireland and Zoopla says that as a result, first-time buyer demand jumped by over a third in November and December 2024 in the price bands where stamp duty for first-time buyers will increase the most from April 2025, between £300,000 and £625,000. 

The greatest savings are to be had by FTBs looking to buy in London and higher value areas of South East England.

First-time buyer demand increased more slowly below £300,000, where first-time buyers will continue to pay no stamp duty, and over £625,000 where there remains no tax relief from stamp duty for first-time buyers. 

It is now too late for first-time buyers to agree and complete property purchases before the end of March 2025 and pay lower stamp duty. However, it is a positive sign that first-time buyer demand remains higher year-on-year, in line with the wider market.  Concerns over a possible cliff edge in home buyer demand after April are overdone.

Homeowner demand also increased in response to the stamp duty changes albeit to a lesser degree. The extra stamp duty payable by homeowners from April (up to £2,500 per purchase) is less than the additional cost for first-time buyers buying homes in the £350,000 to £625,000 price range which will be £2,500 or higher.

Buying a first home in London for the average first-time buyer price of £420,000 will result in stamp duty increasing from £0 to £6,000 from April. For the typical FTB property in South East England (£332,500) the increase will be from £0 to £1,625.

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