The average UK house price remains more than seven times the typical annual gross earnings, despite a slight dip in prices.
Propertymark’s Housing Insight Report for January 2025 reveals that the average UK house price stood at £268,000 at the end of 2024, while the number of new prospective buyers registered per member branch rose to 87 – a clear surge driven by the looming stamp duty threshold changes in April.
As homeowners rush to complete transactions before the new rules take effect, many face the reality of higher property tax in England and Northern Ireland from next month. This spike in activity is expected to taper off as the deadline approaches.
In the private rental sector, tenant demand has surged. The average number of new prospective tenants per member branch jumped from 79 in December 2024 to 115 in January 2025, further widening the gap between supply and demand. Currently, there are an average of nine registered applicants for every available property.
MARKET ADJUSTMENT
Nathan Emerson, Chief Executive of Propertymark, says: “As anticipated, January saw an uplift in sales activity due to the upcoming stamp duty changes, pushing many homeowners to complete purchases before the increased tax burden comes into effect.
“It will be interesting to observe how the sales market adjusts in the coming weeks as we move closer to the deadline.”
He adds: “In the private rental market, the imbalance between demand and supply remains stark.
“Without meaningful government support to keep landlords in the market or attract new investors, we risk seeing more landlords exit, further shrinking supply and driving rents even higher.”
INFLATION HEADACHE
Phil Spencer, TV pundit, property expert and founder of Move IQ, says: “Buyers and sellers appear more confident, spurred on by improved mortgage products, lower interest rates, and signs of easing costs.
“The crucial factor now is whether inflation continues to fall, which would boost affordability and give more people the confidence to commit to a move.”
On the rental sector, Spencer points to the upcoming Renters’ Rights Bill and the government’s consultation on energy efficiency requirements for private rental properties by 2030.
And he says: “While these measures aim to support renters, they also place added financial pressure on landlords. How these competing forces play out will be a defining theme for the rental market in 2025.”
