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The UK housing market has seen its strongest start in three years, with new sales agreements up 12 per cent in the four weeks to 24 January, compared with the same period last year, according to property website Zoopla.
This surge in activity comes as the number of homes for sale also increased 10 per cent year-on-year.
Zoopla has said this could be driven by buyers aiming to complete purchases before the April 1 stamp duty changes. These changes will see the “nil rate” band for first-time buyers reduced from £425,000 to £300,000 in England and Northern Ireland.
The average UK house price now stands at £267,700, having risen by £5,200 over the past year, rebounding from a £2,400 dip in 2023.
This early-year boost suggests a potential resurgence in market activity, although the impact of the upcoming stamp duty changes remains to be seen.
Rising volumes of sales are supporting UK house price inflation. Zoopla said house prices across the UK were 2 per cent higher on average in December 2024 than a year earlier, ranging from 7.7 per cent in Northern Ireland to 1 per cent in eastern England.
But there are signs that the recent upturn in prices is starting to level out as mortgage rates drift higher and buyers have a wider choice of properties, the report said.
Zoopla said house price inflation will be kept in check over 2025 but the current North/South divide in home price inflation is expected to continue over the year ahead.
Richard Donnell, executive director at Zoopla said: “The first few weeks of each year tend to provide a clear indication of how the rest of the year is likely to unfold.
“2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.
“It is important not to read too much into the increase in stamp duty for more buyers from April as three in five first-time buyers will still pay nothing from April. The extra costs to homeowners remain manageable and unlikely to reduce sales but they will keep price rises in check.
“The healthy stock of homes for sale will keep price rises in check and we are forecasting average UK house prices will rise by 2.5 per cent in 2025 with 5 per cent more sales than last year at 1.15 million.
“Rising incomes and base rate cuts will improve affordability and support consumer sentiment.”
Malcolm Prescott, managing director of Webbers Estate Agents said: “January has started very positively here in the South West, with an abundance of new listings and sales to match.”
Here are average house price change over 2024 across UK nations and regions, according to Zoopla.
Its figures show average house prices in December 2024, followed by increases across 2024 in cash and percentage terms:
Northern Ireland, £179,200, £12,800, 7.7 per cent
North West England, £199,700, £6,200, 3.2 per cent
North East England, £146,100, £4,100, 2.9 per cent
Scotland, £166,900, £4,600, 2.8 per cent
Wales, £206,800, £5,400, 2.7 per cent
Yorkshire and the Humber, £189,700, £4,900, 2.7 per cent
West Midlands, £232,900, £5,100, 2.2 per cent
East Midlands, £230,600, £3,700, 1.6 per cent
London, £535,100, £7,200, 1.4 per cent
South West, £314,000, £3,700, 1.2 per cent
South East, £386,200, £4,100, 1.1 per cent
Eastern England, £337,100, £3,300, 1 per cent
Source: independent.co.uk
