Savills – UK Housing Market Update, Jan 2025

The report by Savills "UK Housing Market Update, Jan 2025" analyzes recent trends and forecasts in the UK housing market. The UK housing market showed strong growth with house prices rising by 0.7% in December and a total growth of 4.7% in 2024. Despite this, average values remain 1.6% lower than pre-Mini Budget peaks. The strongest growth was in the North East at 5.9%, while East Anglia saw the weakest at 0.5%. Market activity remained robust, with completed transactions reaching high levels in late 2024. The market is expected to be active until March as buyers rush to avoid higher stamp duty rates in April. Future price growth of 4% in 2025 hinges on falling mortgage rates, with the Bank of England expected to maintain a cautious approach to rate cuts. Rental growth accelerated to 4.1% in November, driven by limited stock despite reduced tenant demand.