The average UK house price now stands at £267,700, according to the latest Zoopla house price index.
Property values across the nation have risen by two per cent compared to last year, marking the fastest growth rate since April 2023.
The housing market is expected to maintain its upward trajectory, with forecasts suggesting prices will climb by 2.5 per cent by the end of 2025.
This represents a significant turnaround from the -0.9 per cent decline recorded a year ago.
A stark north-south divide has emerged in UK house price growth, with Northern Ireland leading the way at 7.7 per cent.
The North West of England follows with a robust 3.2 per cent increase in property values.
Southern regions of England are experiencing markedly slower growth, with all areas recording price rises below 1.5 per cent. This regional disparity in price growth is expected to persist throughout 2025.
Local success stories highlight the north’s strong performance, with Wigan in the North West seeing prices surge by 5.6 per cent.
Motherwell in Scotland has also recorded impressive growth at 4.9 per cent. The robust price increases in northern regions align with stronger employment growth, with the North West of England, Scotland and Northern Ireland outpacing southern England in job creation over the past two years.
These employment trends have helped drive the regional housing market disparities. The housing market has begun 2025 with remarkable momentum, showing stronger activity than both 2024 and 2023.
Buyer demand has surged 13 per cent compared to last year, while the number of available properties has increased by 10 per cent.
Estate agents now have an average of 31 homes for sale – the highest January figure in seven years.
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Property prices have risen across the UK
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Sales agreements have also risen by 12 per cent, with some buyers rushing to complete purchases before the stamp duty changes in March.
The market surge has been fuelled by increasing interest from potential buyers, with 22 per cent of renters now seeking to become first-time buyers. A further 17 per cent of current homeowners are actively looking to move properties.
First-time buyer demand is particularly concentrated in London and South East England, driven by upcoming changes to stamp duty relief in April.
However, rising mortgage rates and abundant housing stock are expected to keep price inflation in check throughout 2025.
