UK housing market sees strongest start in three years – Zoopla

The UK’s housing market has seen its strongest beginning in three years, with new sales agreements surging 12% compared to 2024, Zoopla reveals.

Its latest House Price Index shows that buyer demand has grown by 13%, and the number of available properties has risen by 10%.

This surge in activity is bolstering house price inflation, currently at 2% for the year ending December 2024.

That’s a significant shift from the -0.9% recorded for the previous year.

‘Bodes well for market activity’

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.”

He added: “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.”

Mr Donnell says that house prices will rise by 2.5% this year, with house sales up by 5%.

Variations in price growth

Regional variations in price growth exist, ranging from 7.7% in Northern Ireland to 1% in Eastern England.

The impending removal of stamp duty relief in April has also spurred first-time buyer interest, particularly in price brackets most affected by the change.

However, first-time buyers can no longer complete purchases before April to benefit from lower stamp duty.

Despite this, first-time buyer interest remains strong, mirroring the overall market.

Zoopla also says that fears of a sharp drop in buyer demand after April are unfounded.

The average house price

The president of NAEA Propertymark, Toby Leek, said: “With the average house price higher than what was achieved last year, coupled with the fact that more buyers are looking to move home, now is a great time to consider putting your house on the market.

“Propertymark member agents reported that the number of new buyers registered per branch has on average increased year on year by 44%.”

He adds: “The Stamp Duty changes due to commence in England and Northern Ireland from April are having the expected effect of high activity due to many people wanting to save themselves potentially thousands on their next home move.”

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