Housing market ‘off to its strongest start in three years with sales up by 12%’

The housing market has got off to its strongest start in three years, according to a property website.

The volume of new sales agreed was up by 12%, when comparing the four weeks to January 24 2025 with the same period last year, Zoopla said.

The number of homes for sale is also 10% higher than a year ago, according to its data.

The website suggested some buyers are attempting to beat a stamp duty hike from April 1, which will see the “nil rate” band for first-time buyers reduce from £425,000 to £300,000. Stamp duty applies in England and Northern Ireland.

The average UK house price was put at £267,700, having increased by £5,200 across last year, after a £2,400 decrease during 2023.

Rising volumes of sales are supporting UK house price inflation. Zoopla said house prices across the UK were 2.0% higher on average in December 2024 than a year earlier, ranging from 7.7% in Northern Ireland to 1.0% 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% in 2025 with 5% 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: