Property sales have reached a significant milestone, surpassing the 100,000 mark on a monthly basis.
UK Property Market Shows Signs of Recovery
The UK property market, which has been struggling for some time, is showing signs of recovery, according to recent data and analysis. After a base rate reduction in four years, the market in 2025 is characterized by slower price growth, increased transactions, more supply, and better affordability options, especially for first-time buyers.
House price growth is slowing, with annual growth rates dropping to around 1.4% to 2.1%, depending on the source. Savills now expects only about a 1% price increase in 2025, down from earlier forecasts of 4% or more. Rightmove forecasts a 2% rise for the year.
Sales activity is also on the rise. Properties are being agreed on at the fastest rate seen in four years, with about 5% more transactions predicted in 2025 compared to 2024. The number of homes available for sale has increased by 14%, improving options for purchasers.
Regional variations persist, with the North East of England experiencing stronger price growth (about 6.7% year-on-year), whereas London’s house prices remain flat. This reflects affordability pressures in higher-priced markets and uneven demand across regions.
Analysts suggest the market is becoming more balanced or even favouring buyers, as sellers adjust prices realistically amid slower growth and affordability concerns. However, moving costs, including Stamp Duty and related fees, have risen sharply (13% increase), pushing some total moving costs in England near £52,000.
Colby Short, co-founder and CEO of GetAgent.co.uk, has been optimistic about the market's recovery. He mentioned that the market has shown a high level of positivity so far in 2024, with the total number of UK transactions in August 2024 exceeding 100,000, the first time in almost two years. This is a significant increase from the average of 99,510 transactions completed across the UK market on a monthly basis between December 2021 and August 2023.
The increase in transactions can be attributed to the greater level of stability, which has helped filter through to an increase in transactional volumes. Colby Short attributes this stability to the Bank of England's decision to hold interest rates, which has boosted the market's confidence tenfold.
The time required to push a sale through from offer accepted to complete has contributed to the delay in seeing an increase in transactional volumes. However, following the first base rate reduction in four years at the start of August, the number of transactions saw an increase of 7.6% versus July. This increase suggests that the property market is starting to filter through to transactional volumes.
Despite the recent improvements, the longer-term outlook remains cautiously optimistic. Although short-term price growth has slowed, forecasts from Savills indicate a potential cumulative UK house price growth of about 24.5% by 2029, an upward revision from previous estimates.
In summary, the UK property market is showing signs of recovery, with slower price growth, increased transactions, more supply, and better affordability options. However, moving costs have risen and regional disparities remain significant. The market's future looks promising, with a potential cumulative house price growth of about 24.5% by 2029.
(Related news fact: The Mansfield pantomime is expected to bring money into the town this Christmas.)
Investors may find the UK housing-market attractive due to slower house price growth and increased transactions in 2025, as stated in the analysis of the recovering property market. In terms of real-estate, first-time buyers could benefit from better affordability options, such as lower annual house price growth rates, compared to earlier forecasts.
