The average UK house price remains over seven times the average of individuals’ annual gross earnings – despite a dip in prices.
Propertymark’s latest Housing Insight Report for January 2025 shows that the average number of new prospective buyers registered per member branch increased to 87 in January 2025 with the average UK house price standing at £268,000 at the end of 2024.
As widely expected, there was an uplift in activity in the sales market due mainly to the stamp duty thresholds changing in April, which will see many homeowners pay more property tax in England and Northern Ireland.
In the lettings market tenant demand saw a significant rise.
The average number of new prospective tenants registered per member branch rose from 79 in December 2024 to 115 at the beginning of the year.
DEMAND OUTPACING SUPPLY
Overall, demand continues to outstrip supply, with the average number of applicants per member branch hitting around nine people for each available property.
Nathan Emerson, Chief Executive of trade body Propertymark, said: “As widely expected, January 2025 saw an uplift in activity in the sales market due mainly to the stamp duty thresholds changing, requiring many homeowners completing from April onwards to pay more tax in England and Northern Ireland.”
And he added: “It will be interesting to see how the dust settles within the sales market as we move closer to that deadline. Indeed, we are likely to witness this spike in activity tail off.
“However, people continue to adapt to market conditions, and for those who are factoring in this additional cost, their home move plans may remain unchanged.
“For the private rental market, pressures remain, and the age-old story continues of demand levels increasing against a slowing backdrop of supply.
“We know that without government support for landlords to continue in the market or for future investors to enter, many may take their investment capability elsewhere or sell up altogether, worsening the ever-widening gap and ultimately pushing up rents even further.”
INFLATION HEADACHE
Phil Spencer, TV pundit and founder of Move IQ, said: “Many home buyers and sellers may be much more confident at approaching the housing market, as a combination of factors, like improved mortgage products, lower interest rates, and overall costs – potentially easing for many across the country.
“The next and most crucial hurdle is if inflation continues with a path back downwards. Lower inflation will hopefully help more aspiring and current homeowners’ affordability and allow them to move forward and commit to a potential move.”
RELENTLESS BATTLE
And he added: “For renters, it seems to be a relentless battle to find an ideal home and ensure it’s affordable.
“With the long-awaited Renters’ Rights Bill to become law and a government consultation underway on plans to require landlords to improve energy efficiency in private rental properties by 2030, both initiatives will provide much-needed help and assistance to renters but may equally impose substantial new costs on landlords.
“How these additional pressures play out in the rental market will be a major part of the story in 2025.”
