The UK housing market is showing signs of a strong start in 2025, with significant increases in new property listings and a rise in average asking prices. Estate agents Rightmove report 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 2020¹. Despite this growth, average prices remain approximately £9,000 below the peak reached in May 2024, reflecting ongoing affordability considerations for buyers¹.

Increased Property Listings

The number of new property listings has risen by 11% year-on-year since Boxing Day, providing buyers with a broader selection of homes¹. This influx has led to the highest number of properties available per estate agency branch for this time of year in a decade¹. The increased supply is intensifying competition among sellers, who are being advised to price properties realistically to attract potential buyers¹.

 Buyer Activity and Market Dynamics

Buyer interest has also surged, with a 9% increase in inquiries to estate agents and an 11% rise in agreed sales compared to the same period last year¹. This suggests that buyers are responding positively to greater property availability and expectations of improving mortgage rates². However, the market remains sensitive to external factors, such as interest rate fluctuations and impending stamp duty changes, which may influence buyer behaviour later in the year¹.

Tim Bannister, Rightmove’s Director of Property Data, highlighted that while the market is experiencing a buoyant start, sellers must remain pragmatic with pricing strategies¹. Overpricing could deter potential buyers, particularly in a market where affordability continues to be a critical concern. Bannister emphasised that realistic pricing is key to ensuring successful transactions in the current competitive landscape¹.

Conclusion

Early indicators for 2025 suggest a vibrant housing market driven by increased supply and active buyer participation. While more property options benefit buyers, it’s wise for sellers to adopt realistic pricing to help aid changes of a sale in such a busy marketplace. With the market poised for growth, attention to economic factors like interest rates and policy changes will be crucial for both buyers and sellers as the year progresses.

Sources

1. 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]
2. 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]

All the information in this article is correct as of the publish date 30^th January 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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