Five regions are tipped to see 5% house price growth in 2025 (Image: Getty)
The average in the UK is tipped to rise by just 2.5% by the end of 2025, but prices are set to outdo that figure in five regions.
Zoopla expects the average UK house price to rise by 2.5% by the end of next year and says buyers are more price-sensitive after the Labour Government’s first Budget.
Sales volumes look set to continue their recovery, with up to 1.15 million in 2025, according to the property firm.
Its annual growth of 2.5% compares to Savills, which forecasts a more optimistic 4%. While these two figures offer an insight into the national picture, there are also some regional variations worth noting.
Five regions have been tipped by Savills to grow by 5%. These are: North West England, North East England, Yorkshire and the Humber, the West Midlands and Scotland.
Savills expects 4% average house price growth in 2025 (Image: Getty)
Wales and the East Midlands are set for 4% house price growth while South West England, South East England and the East of England will see 3%, according to Savills.
Next year may prove challenging for buyers and sellers, with a stamp duty rise due in April, elevated set to continue for longer after the latest inflation figures and a tightening of the rules on landlords.
Buyers have already been agreeing deals ahead of , which will see the “nil rate” band for first-time buyers in England and Northern Ireland reduce from £425,000 to £300,000.
Richard Donnell, Executive Director at Zoopla, said last week that a “sizable” pipeline of sales will be completed in the first six months of 2025 as people hope to avoid the forthcoming higher stamp duty costs.
He suggested affordability constraints will keep the pace of house price growth in check over the course of next year, but there will be enough price inflation to support 5% more home moves.
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Landlords may seek to offload some or all of their rental properties next year (Image: Getty)
Meanwhile, the latest English Private Landlord Survey shows a third of landlords want to offload some or all of their rental properties.
Higher and the end of no-fault evictions under the forthcoming Renters’ Rights Bill are making the property investment climate more hostile – which is good news for first time buyers are the supply of homes looks set to increase.
What the Bank of England does with next will prove to be a key determinant of what happens to the housing market in 2025.
Rightmove’s Tim Bannister told the a Bank Rate cut and some rate falls early on in the year will help settle the market and provide a boost to sentiment and consumer confidence.
The property website warns, however, that uncertainty over rising stamp duty and wage growth levels may affect activity later next year.