Busiest start for three years say Zoopla

Further evidence of a positive start to the property market in 2025 is revealed in the latest House Price Index from Zoopla who say the first four weeks of January have been the busiest for three years with buyer demand up 13% and 10% more homes for sale.

The property portal says it has seen demand increase by up to, and over a third in areas where first time buyers could save the most on the current stamp duty reliefs, due to end on 1st April 2025. 2025 begins with the highest number of homes for sale per estate agency branch (31) for seven years

First-time buyer demand jumped by over a third in November and December 2024 as transaction timelines meant if conveyancers had not been instructed before Christmas, it is unlikely the transaction would complete before the end of March. The highest jump in demand was in the price bands where stamp duty for first-time buyers will increase the most; £300,000 and £625,000.

 

 

 

 

 

 

 

 

 

 

 

 

But fears of a cliff edge in April following the end of stamp duty reliefs for FTBs are ‘overdone’ say Zoopla, despite a poll this week suggesting nearly half of estate agents fear a dip in transactions from 1st April. The portal says it continues to see higher year on year FTB demand, in line with the rest of the market and says even after 1st April, three in five FTBs will continue to pay no SDLT with the report going on to say

“A healthy stock of homes for sale will keep price rises in check and we are forecasting that average UK house prices will rise by 2.5% in 2025, with 5% more sales taking place than last year, at 1.15m. Rising incomes and base rate cuts are set to continue to improve housing affordability over 2025.”

And Zoopla’s Monthly Consumer Tracker shows there has been an increase in the proportion of households looking to buy amongst renters and existing homeowners compared to a year ago; driven by an acceptance of a new normal when it comes to interest rates and further cuts in 2025. 22% of renters and 17% of homeowners are looking to buy in the next two years; both marginally up on the same time 12 months ago.

 

 

 

 

 

 

 

 

 

 

 

 

Commenting on the latest HPI report 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 per cent 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.”

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