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New sales of homes saw double-digit rise in January

New sales of homes saw double-digit rise in January
Christina Hoghton
Written By:
Posted:
31/01/2025
Updated:
31/01/2025

The housing market got off to its strongest start in three years, with new sales agreed up 12% compared to 2024.

That’s according to Zoopla, which added that buyers demand is also up by 13% and the supply of homes for sale by 10%. This means 2025 is starting with the highest number of homes for sale (31) per estate agency branch for seven years.

House price inflation ranges from 7.7% in Northern Ireland and 3.2% in the North-West to just 1% in the East of England.

First-time buyer boost

The property portal said that the removal of stamp duty relief from April 2025 has boosted first-time buyer demand by over a third in price bands where stamp duty costs will rise the most. That’s because aspiring homeowners are rushing now to beat the looming deadline.

It added that the appetite to move home now or in the next two years is greater than a year ago with 22% of renters and 17% of homeowners looking to buy.

The annual rate of UK house price inflation is now running at 2%, up from -0.9% a year ago. The average UK house price is now £267,700, an increase of £5,200 over 2024 following a £2,400 decline over 2023.

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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 five per cent more sales than last year at 1.15m. Rising incomes and base rate cuts will improve affordability and support consumer sentiment.”