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Rightmove Reveals a Promising Start for the UK Housing Market in 2025

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    New Report Offers Positive Insight for the Year Ahead

    According to recent data published by Rightmove, the UK property market has started the new year ‘with a bang’ thanks to record numbers of new sellers, and an increase in the average price and number of sales agreed.

    This is promising news following a lot of uncertainty in 2024, particularly for property investors hoping for a strong market throughout the year ahead.

    Learn more about this data and what it means for the housing market in the UK.

    The North West Region Is Forecast to See the UK's Highest Five-Year Capital Growth Rate in 2025 and Beyond!

    Read more about this in our guide to the latest Savill's Residential Property Market Forecast and learn which UK regions to consider for buy to let investment.

      Man in a suit holding a mini model of a house

      Average Property Prices Have Jumped by 1.7%

      Rightmove reported a monthly rise of 1.7% in average property prices in the UK. This is the largest jump in property prices at the beginning of a year since 2020, which paints a positive picture for the year ahead.

      While we don’t yet know how the market will perform throughout the rest of 2025, this initial rise at the start of the year is supportive of the predictions published in the latest regional property market forecast from Savills.

      Savills anticipates an average rise of 4% for UK property prices in 2025, with the highest regional growth expected in the North West, North East, and Yorkshire and the Humber with a 5% increase.

      The UK Property Market in 2025 - What's Predicted?

      Learn whether 2025 is a good year to invest with our key predictions for the year ahead, as well as a look back on 2024 and how the market performed. Download your essential guide now!

      Seller Activity is Booming

      Seller activity is a key factor to watch when it comes to the UK property market, and the latest data on seller activity points towards a busy 2025.

      The beginning of 2025 brought with it a surge in enquiries from buyers and agreed sales, likely fueled by increased buyer choice on the market. The number of new properties coming to market is reportedly 11% higher as of January compared to the same period last year, while the average number of properties for sale per estate agency is also currently at the highest price for this time of year since 2015.

      Rightmove has also recorded its busiest start to a year for prospective home-movers applying for a Mortgage in Principle.

      While this uptick in demand is a good sign for property market health overall, sellers are experiencing some challenges. Those who have taken advantage of increased demand for property by upping their asking prices are being overlooked in favor of more competitively priced properties. This is why remaining realistic about pricing when looking to sell a property is so important for sellers who want to attract high demand.

      Some Uncertainty Lies Ahead But Predictions Remain Positive

      While buyer demand and rising property values have kicked the year off to a good start, the property market still faces a level of uncertainty in 2025. The pace and scale of potential interest rate cuts from the Bank of England and upcoming changes to stamp duty tax rules from the 1st April are one concern, while challenges to mortgage rates are another, with a decrease in lower-fixed-rate deals.

      Despite these uncertainties, forecasts suggest we can remain positive about the property market in 2025, with predictions suggesting a great year to buy and sell property in the UK. Rightmove, for instance, has predicted a larger number of transactions in 2025, with a projected figure of 1.15 million. Average asking prices are also predicted to increase by 4%.

      For those planning to rent property to tenants this year, Savills predicts a growth of +2.9% for UK rental market prices in 2025. This makes the potential to generate a high return on investment even higher for buy to let investors, particularly those that are selective in the rental properties they offer, focusing on high-quality properties in key UK locations.

      If you’re looking for property market deals with the most competitive prices, highest returns, and exclusive offers, be sure to take a look at our latest back-to-market investment opportunities. These back-to-market units allow the chance to invest in projects that have completely sold out due to high demand, and offer amazing benefits such as free furniture packs worth £5,000.

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      Author

      Amy Jackson

      Amy Jackson is a property writer at RWinvest, helping our readers stay ahead of UK market trends with the latest news and statistics.

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