The report shows that there are 283,000 sales agreed working their way through to completion in the first half of 2025 - the largest sales pipeline in four years, worth £104bn, and an increase of 30% compared to this time last year. In the last four weeks, sales agreed were up 23% on last year's figures as buyers try to beat the April deadline for stamp duty changes.
More sales have also helped house prices return to growth in 2024. Annual house price growth was 1.9% in the 12 months to November 2024, compared to -1.2% a year ago, with the average UK house price now standing at £267,500. This figure varies regionally, with house price growth ranging from 0.7% in the South East to 6.8% in Northern Ireland and 3.5% in the North West region.
However, buyers are becoming more price-sensitive as mortgage rates drift higher - with the average buyer now paying 3.6% below the asking price. In contrast, over the summer of 2024, buyers were more confident as mortgage rates fell, agreeing purchase prices that were, on average, 3.2% below the asking price.
Zoopla say the figures show it remains 'a buyer’s market' and that signs of increased caution amongst home buyers will keep UK house price growth in check over 2025.
Richard Donnell, executive director at Zoopla, said:
“Buyers and sellers returned to the housing market in 2024 having delayed moves in the face of higher mortgage rates. There is a sizable pipeline of sales that will complete in the first half of 2025 with many hoping to avoid higher stamp duty costs from next April.
“More sales have supported a return to house price growth across the country but home buyers have become more price-sensitive in recent weeks as mortgage rates drift higher. Affordability constraints will keep the pace of house price growth in check over 2025 but there will be enough price inflation to support 5% more home moves.”
Nathan Emerson, CEO of Propertymark comments:
“When you compare how the housing market entered 2024 to where we stand as we head into 2025, it’s an incredible journey that has seen consumer confidence and affordability grow consistently across the entire year.
“While there may still be aspects of the wider economy that need to find greater stability overall, the housing market sits in a strong position to deliver growth. We are expecting to see a busier than normal first quarter, especially across England and Northern Ireland, as people look to complete on their purchases before the proposed stamp duty thresholds change in April.”
Malcolm Prescott, managing director of Devon estate agents Webbers, comments:
“Zoopla’s latest House Price Index reveals a 1.9 per cent year-on-year growth and here in the South West we can report that individual homes have performed a little better. All of this is supported by rising salaries (4 per cent up in real terms on average) and the current competitive mortgage rates, which we see continuing. This resilience underscores the long-standing strength of the UK housing market.
“Additionally, buyers now have greater choice, with many estate agents including ourselves here in the West Country, reporting a 30 per cent increase in available stock compared to last year. This gives prospective buyers a better chance of finding their dream home.”
