🏡 January 2025 - What's happening to house prices?
The average price of property coming to market rises by 1.7% (+£5,992) this month to £366,189, the largest jump in prices at the start of the year since 2020... READ MORE
Here are 5 key points from the report that you ought to know ⬇️
🟢 New seller asking prices are still nearly £9,000 below May 2024’s record, reflecting buyer affordability constraints.
🟢 A record number of early-bird new sellers have come to market since Boxing Day, giving buyers the highest level of choice at the start of a year since 2015, which has also contributed to an encouraging start to 2025 buyer activity:
- The number of new properties coming to market is 11% ahead of the same start-of-the-year period last year.
- The number of buyers contacting agents about properties for sale since Boxing Day is 9% ahead of last year, and the number of sales being agreed over the same period is up by 11%.
- Rightmove has recorded its busiest start to a year for Mortgage In Principle applications, evidence of buyer intent.
🟢 However, despite the promising start to 2025 there are uncertainties ahead, including the pace and number of interest rate drops and the impact of the stamp duty deadline on 31st March.
🟢 Mortgage rates remain sticky, blocking many buyers from significant affordability improvements.
🟢 Rightmove’s weekly mortgager tracker shows that the average five-year fixed mortgage rate is now 4.75% compared with 4.78% at this time last year.
Colleen Babcock, property expert at Rightmove said:
“It’s important to look at the bigger market picture, despite the positive early lead indicators that we’re seeing. Many buyers are still affordability-stretched, with high mortgage rates restricting borrowing power and limiting what they can afford to pay. Meanwhile, first-time buyers have seen support schemes reduce and some also face higher stamp duty fees from April, all while contending with record rents and trying to save up for a deposit. Rightmove’s early-year snapshot shows a promising start to 2025. However, the market needs a boost for that momentum to be sustained, in the form of early and ongoing Bank Rate cuts, which should hopefully help to reduce mortgage rates. Some further support for first-time buyers would also be welcomed, particularly in more expensive areas of the country.”
