UK Housing Market Boom: Record Activity And Growth - Will it Last?

UK Housing Market Boom: Record Activity And Growth

The UK housing market has entered 2025 with notable momentum, marked by strong activity and continued house price resilience. From increased property listings to regional price movements and policy considerations, the housing landscape remains dynamic. Whether you're a first-time buyer or a seasoned homeowner, staying informed is essential. Mortgage One is here to support you in navigating this evolving market.

Record Activity And New Listings

The end of 2024 saw a surge in new property listings, contributing to a busy start to the new year. Increased seller confidence has led to more homes coming onto the market, offering a broader range of choices for prospective buyers.

Why It Matters: A rise in listings provides more options but can also intensify competition, highlighting the importance of timely decision-making.

House Prices Continue Steady Growth

House prices have shown steady monthly growth as the year begins, continuing an upward trend from the previous year. This reflects a resilient market environment, even amid affordability concerns.

Key Takeaway: While price growth benefits existing homeowners, it reinforces the need for personalised mortgage solutions for buyers seeking value and stability.

Regional Variations In Price Trends

Variation in price growth remains evident across UK regions:

• Certain regions in the UK have experienced stronger price growth than others.

• Areas with higher existing property values have shown more moderate increases.

Understanding regional dynamics can help buyers identify locations that match their financial and lifestyle goals.

Stamp Duty Changes Driving Market Activity

Expectations around potential changes to property transaction taxes have influenced market activity, particularly towards the end of 2024. This has encouraged some buyers to move quickly in anticipation of new policies.

Buyer Tip: Staying ahead of policy shifts can help you maximise value. Mortgage One offers expert guidance to ensure you're well-positioned for any changes.

Mortgage Rates And Economic Factors

With recent central bank rate decisions holding steady, attention is now on possible changes in interest rates in the year ahead. Buyers and remortgagers are weighing the benefits of securing current deals versus waiting for potential reductions.

Expert Insight: Locking in a competitive rate now can offer stability in a changing economic environment. Speaking with a mortgage broker like Mortgage One ensures you make informed decisions tailored to your situation.

Challenges In The Super-Prime Market

The high-end property sector, particularly in central London, has seen reduced transaction volumes, influenced by broader political and policy factors. Nonetheless, demand remains for properties in sought-after locations, especially among international and younger affluent buyers.

What To Expect In 2025

Looking ahead, analysts suggest continued market growth, with steady increases in both house prices and transaction volumes. Market conditions are expected to support greater affordability and an increase in supply, sustaining buyer interest.

Navigate The Market With Mortgage One

As the housing market continues to evolve, opportunities remain across the board. Whether you're purchasing your first home, upsizing, or investing, Mortgage One offers tailored, professional advice to help you secure the right mortgage solution for your needs. Contact us today for guidance through every step of your homeownership journey.