The UK property market has begun 2025 with positive momentum, evidenced by a significant uplift in new property listings and rising average asking prices.
Rightmove reports that the average price of properties coming to market has increased by 1.7% (£5,992) this month, reaching £366,189 – the largest new year price jump since 2020 1.
However, it’s worth noting that average prices are still approximately £9,000 below the peak seen in May 2024, reflecting the affordability challenges many buyers continue to face.
Increased Property Choice for Buyers
A key factor in this market activity is the 11% year-on-year increase in new property listings since Boxing Day. This influx of properties has resulted in the highest number of homes available per estate agency branch for this time of year in a decade.
This greater supply is creating more competition among sellers, who are being advised to price their properties realistically to attract buyers.
Buyer Activity and Market Trends
Buyer demand is also on the rise, with a 9% increase in enquiries to estate agents and an 11% rise in agreed sales compared to the same period last year. This suggests that buyers are reacting positively to the increased property choice and perhaps anticipating improvements in mortgage rates 2.
The market, however, remains sensitive to external influences, such as potential interest rate changes and any alterations to stamp duty, which could impact buyer behaviour later in the year.
Rightmove’s Director of Property Data, Tim Bannister, has commented that while the market has seen a strong start, sellers should be practical with their pricing. Overpricing could deter potential buyers, especially given the ongoing affordability concerns. He emphasised that realistic pricing is crucial for successful sales in the current competitive environment.
Looking Ahead
The early signs for 2025 point towards an active housing market, driven by increased supply and strong buyer participation. While the wider choice of properties is good news for buyers, sellers should be mindful of pricing their properties competitively to maximise their chances of a sale in this busy market. As the year progresses, economic factors like interest rates and potential policy changes will be important for both buyers and sellers to keep an eye on.
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Sources:
1. Rightmove (2024) Rightmove’s 2025 Housing Market Forecast. Available at: https://www.rightmove.co.uk/press-centre/rightmoves-2025-housing-market-forecast/ [Accessed 20 Jan 2025]
2. The Guardian (2025). UK housing market ‘starts new year with a bang’, says Rightmove. Available at: https://www.theguardian.com/business/2025/jan/20/homes-uk-housing-market-new-year-rightmove [Accessed 20 Jan 2025]
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