The average property in the UK may cost £269,426 but that’s still lower than the peak of frenzied post-lockdown buying two years ago.

Then (August 2022) the figure for the typical UK home was £273,751. This is according to the last Nationwide House Index for 2024. Despite this, the December figure for 2024 is 4.7% higher than at the start of the year. 

North-south divide continues unabated

The price increase indicates a clear north sound divide in England. Properties in the north of the country increased by 4.9% while in the south the figure was lower, at a more modest 2.2%.

Property analysts predict mortgage interest rates will fall this year – but not by much. And there’s no hard and fast rule as to when this will happen. The expectation though is enough to encourage buyers, with the first few months expected to be the busiest. That’s because the recent increased Stamp Duty allowances for first time buyers of £425,000 in England and Wales, and for those purchasing homes under the £250,000 threshold end on April 1. Last year first-time buyers made up 31% of all property sales.

Analysts predict 3% rise in property prices in 2025

Property agents Hamptons predict a 3% rise in house prices in 2025 and 3.5% the following year. Both they and property portal Rightmove believe this year will prove to be a buyers’ market for UK property. The latter predicts a rise in property figures for the London market of 4% over the next 12 months. They attribute much of this to major companies bringing employees back into the office rather than encouraging working from home.

Boxing Day property enquiries 20% ‘up’ on last year

Meanwhile the number of properties agents have on their books to sell is higher than any time within the past decade. In addition, Rightmove enquiries were 20% higher on Boxing Day 2024 than on the same day in 2023.

Landlords brace themselves for new regulations

The Renters’ Rights Bill is expected to be introduced in spring this year. One of the main concessions is that landlords will have to use a Section 8 notice to recover their property from bad or poor-paying tenants. It’s an area which is sure to prove newsworthy over the next 12 months. Watch this space…