The UK housing market is showing signs of a strong start in 2025, with significant increases in new property listings and a rise in average asking prices. Estate agents Rightmove report that the average price of properties coming to market has increased by 1.7% (£5,992) this month, reaching £366,189—the largest new year price jump since 2020¹. Despite this growth, average prices remain approximately £9,000 below the peak reached in May 2024, reflecting ongoing affordability considerations for buyers¹.

The number of new property listings has risen by 11% year-on-year since Boxing Day, providing buyers with a broader selection of homes¹. This influx has led to the highest number of properties available per estate agency branch for this time of year in a decade¹. The increased supply is intensifying competition among sellers, who are being advised to price properties realistically to attract potential buyers¹.

Key Benefits:

• Potentially lower interest rates compared to personal loans.
• Simplifies your finances by combining your mortgage and education funding into a single payment.

Considerations:

• Early repayment charges may apply to your existing mortgage.
• Your monthly payments and overall secured debt may increase.

Buyer interest has also surged, with a 9% increase in inquiries to estate agents and an 11% rise in agreed sales compared to the same period last year¹. This suggests that buyers are responding positively to greater property availability and expectations of improving mortgage rates². However, the market remains sensitive to external factors, such as interest rate fluctuations and impending stamp duty changes, which may influence buyer behaviour later in the year¹.

Tim Bannister, Rightmove’s Director of Property Data, highlighted that while the market is experiencing a buoyant start, sellers must remain pragmatic with pricing strategies¹. Overpricing could deter potential buyers, particularly in a market where affordability continues to be a critical concern. Bannister emphasised that realistic pricing is key to ensuring successful transactions in the current competitive landscape¹.

Early indicators for 2025 suggest a vibrant housing market driven by increased supply and active buyer participation. While more property options benefit buyers, it’s wise for sellers to adopt realistic pricing to help aid changes of a sale in such a busy marketplace. With the market poised for growth, attention to economic factors like interest rates and policy changes will be crucial for both buyers and sellers as the year progresses.

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Email: hello@malloryfinancial.co.uk