Average UK house price sees new year bounce as Rightmove reveals 2025 outlook
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The average asking price for a home in Britain has seen its largest new year surge since 2020, with a 1.7% or £5,992 increase in January, according to Rightmove. This brings the average asking price to £366,189, although it remains £8,942 below the record set in May 2024 due to ongoing affordability constraints. The number of new properties listed, buyer inquiries, and sales agreed are all higher than the same period last year.
However, uncertainties persist, including the pace of interest rate drops, "sticky" mortgage rates, and the impact of stamp duty changes from April. Rightmove expects the smaller-homes sector, typically favoured by first-time buyers, to be particularly affected.
From April 1, 2025, the "nil rate" stamp duty threshold for first-time buyers will decrease from £425,000 to £300,000 in England and Northern Ireland. Rightmove predicts that first-time buyers in less expensive areas will be largely unaffected, but the £300,000 threshold will hinder the bottom-of-the-ladder market in more expensive areas. Some overly optimistic sellers kicking off the new year may find their homes gathering dust on the market, overshadowed by neighbours with more reasonably priced properties, Rightmove has cautioned.
Despite this, the website anticipates that, on average, asking prices will rise by 4% during 2025. Colleen Babcock, a property expert at Rightmove, said: "With lots of homes for buyers to consider, sellers will need to work even harder to stand out from the crowd and attract a buyer.
