The UK property market will favour buyers in 2025

January 15, 2025

The UK property market ended 2024 strongly and provides an exceptionally strong opportunity for buyers in 2025.

Investing early in the year is likely to be the key to maximising returns, but investors from around the world can be assured that the good times are likely to continue for a long time to come.

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House prices keep on rising

The latest reports from Nationwide, released in January 2025, show that house prices have now gone up for four months in a row.

The building society’s price tracker shows that the average property increased in value by 0.7% in December 2024 and by 4.7% over the whole of last year.

The average house price in the UK according to Nationwide is now £269,426 – almost £12,000 higher than it was in December 2023, although still slightly below the all-time high seen in summer 2022.

Robert Gardner, Nationwide’s chief economist, said: “Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers.

“It was encouraging that activity levels in the housing market increased throughout 2024, with the number of mortgages approved for house purchase each month rising above pre-pandemic levels towards the end of the year.”

Looking closely at the data, the North of England saw the majority of the growth. On average, properties in the region increased in value by 4.9% over the last year. In the South, that figure stood at just 2.2%.

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More short-term moves mean deals will be available

So, looking ahead to 2025 – will property values keep going up?

The good news for anyone looking at UK investment property for sale is that this is likely to be just the beginning of the good news.

People are keen to sell their homes, and that means buyers should be able to get deals if they move now.

On one hand, that means investors looking at completed property could secure their next investment at a lower rate. On the other, those who already own properties will benefit from the increased market activity and see their potential capital appreciation go up.

Data from Zoopla’s latest House Price Index shows that buyer demand is up more than 20% annually. That means more competition for the available homes and higher prices as people compete to secure properties.

Combine that with low construction rates – which are likely to stay low despite government targets – and you have a recipe for short-term house price inflation in 2025.

For those who buy early in 2025, that makes this year a great opportunity to secure maximum returns.

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Long-term growth projections make buying now the savvy move

House prices are also likely to keep improving in the long term, too. Updated predictions from Savills show that we can expect an average of 23.4% house price growth across the UK by the end of 2029.

In several of the most attractive investment regions, it will be even higher. For example:

North West – 29.4%
West Midlands – 26.4%

That means that the market will favour those who buy early in 2025. If you do so, you can earn every penny of those price increases.

For example, Manchester city centre apartments and property for sale in Birmingham are two of the most profitable options available to investors in 2025. Both cities offer high demand, affordable entry prices, strong rental growth and outstanding long-term price growth.

And as the above predictions grow, that house price growth is set to be above the national average.

Even the more cautious JLL predicts an average of almost 20% growth in UK house prices by the end of 2029. Additionally, they join Savills in forecasting the highest growth in the regional markets outside London and South East – more good news for anyone looking at the North West and the Midlands.

It’s a buyer’s market and there are opportunities in both the short- and long-term for investors.

Want to learn more about the UK property market and the best buy-to-let opportunities on the market right now? Get in touch with our team today and make the smart investment choice in 2025.

The UK property market will favour buyers in 2025

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