The UK property market grew strongly in 2024 and the new year has carried on that positive trend. The latest data on house prices from January 2025 shows that both owner-occupiers and investors can look ahead this year with confidence.
House prices rising across the UK
The latest RICS Residential Market Survey shows that house prices are rising across the whole of the UK. In particular, the North West and the West Midlands stood out as the strongest performing regions.
That confirms previous reports from some of the nation’s biggest lenders which also showed property values increasing as we begin the new year.
For example, the latest House Price Index from Nationwide shows that house prices increased by an average of 4.7% over 2024. In December the average value went up by 0.7%, taking the new average UK house price to £269,426.
With more growth expected over the rest of 2025 and beyond, this is a great time to buy UK property and earn capital appreciation in the future.
Buyer demand is also increasing
The market is growing because buyer demand is increasing. Returning to the RICS survey, we can see that the number of sales agreed has increased again following a year when buyers returned to the market.
That reflects an underlying confidence and the ability of more people to access affordable mortgages following the two interest rate cuts in 2024.
Zoopla adds further evidence in its latest House Price Index. According to the property portal’s data, the sales pipeline of homes in the UK is at its highest level for four years. In just one year, the number of properties that are being bought and sold has increased by 30%.
Richard Donnell, executive director of research at Zoopla, said: “"Sales market activity has rebounded over 2024 as buyers and sellers return to the market. This has boosted sales volumes.”
Is this a good time to buy property in the UK?
With all this information in mind, we can confidently say that 2025 is shaping up to be an excellent year to buy property in the UK. This holds true for all types of buyers, but those exploring UK investment properties for sale may stand to benefit the most by acting early in the year.
House prices are increasing, and Savills expects to see more than 23% of growth in the next four years. That means people who buy now stand to pay the lowest price to invest, while also enjoying the highest returns.
Moreover, rental prices are consistently rising, presenting excellent opportunities for property investors. There aren’t enough rental properties to go around and construction rates are low. That means there is more competition than ever before.
The latest data from the Office for National Statistics – released in December 2024 – shows that rents went up by an average of 9.2% in England over the last 12 months.
In Manchester that figure was 11.3%, making Manchester city centre property for sale a key market for any buy to let investor.
Want to learn more about the UK’s growing property market and our latest UK property opportunities? Get in touch with our expert property consultants today to begin your journey and access the highest possible returns.
