By Ian Harris MNAEA MARLA, Residential Sales Customer Services Manager at Watsons Property
April 2025 - UK Housing Market Update
This month, we explore the latest trends in house prices, buying timescales, market sentiment, and upcoming policy changes. Whether you’re buying, selling or simply keeping informed, here’s everything you need to know.
UK Housing Market Overview
Sold Prices – HM Land Registry
As of January 2025, the UK housing market has demonstrated steady growth:
- Annual Increase: House prices have risen by 4.9% compared to January 2024.
- Monthly Change: A modest increase of 0.2% from December 2024 to January 2025.
- Average Price: The typical UK home is now valued at approximately £269,000.
Regionally, the North East experienced the most significant annual growth at 9.1%, while London saw a more modest increase of 2.3%, bringing the average property price in the capital to £564,000.
Asking Prices – Rightmove
In March 2025, Rightmove reported an uptick in asking prices:
- Monthly Increase: A rise of 1.1% (approximately £3,876) from the previous month.
- Average Asking Price: Now standing at £371,870.
This aligns with typical seasonal trends, as sellers anticipate increased buyer activity in the spring market. The number of properties listed for sale has reached its highest level in a decade, providing buyers with a broader selection. Despite the cessation of certain stamp duty incentives, buyer demand remains robust, suggesting continued confidence in the housing market.
Surveyor Insight – RICS
According to the Royal Institution of Chartered Surveyors (RICS), the housing market has shown signs of stabilization:
- Buyer Enquiries: The net balance for new buyer enquiries improved to -29% in February 2025, up from -45% in January, indicating a less pronounced decline in demand.
- Agreed Sales: Sales volumes remained steady, with a net balance of +1%, suggesting a plateau in transaction levels.
- Market Outlook: Survey respondents anticipate an increase in sales activity over the next three months, reflecting cautious optimism in the market’s trajectory.
These insights suggest a market that, while experiencing some cooling, maintains a foundation for future growth.
Market Outlook – Zoopla
Looking ahead, Zoopla forecasts a steady stream of sales activity throughout 2025:
- Sales Growth: An expected increase in sales agreements as more sellers, many of whom are also buyers, enter the market.
- Price Inflation: House price inflation is projected to moderate further as supply grows and the additional costs of stamp duty in England influence pricing dynamics.
For sellers, adopting a realistic pricing strategy will be crucial, as buyers have more options and are less inclined to exceed their budgets. Overall, the market appears more balanced and resilient than in recent years, with a healthy interplay between supply and demand.
How Long Does It Really Take to Buy a Home in England?
Embarking on the journey of purchasing a home involves multiple stages, each with its own timeframe. According to Move iQ, the entire process typically spans 12 to 22 weeks. Here’s a detailed breakdown:
- Mortgage Approval: This can take anywhere from 5 days to 8 weeks, depending on individual financial circumstances and the lender’s criteria.
- Selling Your Current Home: If you’re also selling, this process may take between 4 to 10 weeks, influenced by market conditions and property appeal.
- Finding a New Home: The search for the perfect property can vary widely, typically taking 1 to 10 weeks, based on availability and personal preferences.
- Making an Offer: Once you’ve found a property, negotiating and having your offer accepted usually takes about 1 to 2 weeks.
- Conveyancing: The legal process of transferring property ownership is one of the lengthiest stages, averaging 12 to 16 weeks.
- Property Survey: Conducting necessary inspections and surveys can take between 1 to 3 weeks, ensuring the property’s condition meets your expectations.
- Moving In: The final step, moving into your new home, can range from 1 day to 2 weeks, depending on the complexity of your move.
Given these timelines, if you’re aiming for a move between 24 May and 2 August, it’s prudent to initiate the process now to accommodate any unforeseen delays.
Immediate Eligibility for Lease Extensions
A significant reform has been introduced with the Leasehold and Freehold Reform Act 2024, which came into effect on 31 January 2025. Previously, leaseholders were required to own their property for two years before being eligible to extend their lease or purchase the freehold. This waiting period has been abolished, allowing leaseholders to initiate these processes immediately upon ownership. This change aims to provide greater flexibility and control to homeowners, particularly those with shorter leases.
Upcoming Council Tax Changes for Second Homeowners
Effective from 1 April 2025, local authorities in England have been granted the power to impose a 100% council tax premium on furnished second homes. This means that owners of such properties will see their council tax bills double. The measure is designed to address housing shortages and support local services in areas with high numbers of second homes. It’s advisable for second homeowners to consult their local council’s website to understand specific implications and any available exemptions.
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