The housing market has made the strongest New Year start in three years with sales agreed up 12% on 2024,  Zoopla has revealed.

It says the key rason for this has been a rush to avoid higher Stamp Duty rates in April, leading buyers to settle deals before they have to pay more tax.

The ‘nil rate’ Stamp Duty band for home movers will fall from £250,000 back to £125,000 from 1 April, and for first-time buyers, the threshold will go down from £425,000 to £300,000.

Also, concerns about higher mortgage rates do not appear to be affecting the market.

10% higher

Zoopla says homes for sale are also 10% higher than 12 months ago, and the number of properties listed by each estate agency branch (31) is the highest for seven years, while demand for homes is 13% higher than the same time last year.

Also, the average UK house price is now £267,700, an increase of £5,200 compared to 2024, following a £2,400 decline in 2023.

Fastest growth

The fastest growth in average house prices is in Northern Ireland (7.7%), where prices are rebounding off a low base, followed by North West England (3.2%).

Locally, prices are rising fastest in Wigan in England (5.6%) and Motherwell in Scotland (4.9%).

House prices are rising more slowly in southern England where they are above average, and it is taking longer for rising incomes to ease housing affordability, Zoopla says.

2025 has started well, better than 2024 and 2023 which bodes well for market activity.”

Industry reaction

Gareth Samples, CEO of The Property Franchise Group

“The year has started with an increase in market activity, with property transactions expected to be much healthier this January compared to last year.  This is driven by factors such as marginally lower mortgage rates, a robust sales pipeline, and more favourable market conditions.

“Many prospective buyers who were waiting for mortgage rates to drop, have also been spurred on by the upcoming Stamp Duty changes and are hoping to get their transaction over the line before April. While some may have preferred to wait longer for mortgage rates to ease further, the looming deadline has motivated them to accelerate their plans.

“The increased demand, coupled with an improving economic outlook, is helping to sustain house prices. While we may see demand moderate somewhat after the Stamp Duty changes, factors like the anticipated interest rate cuts are expected to bolster market confidence.”

Richard Donnell (main image) Executive Director at Zoopla

“2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.

“It is important not to read too much into the increase in Stamp Duty for more buyers from April as three in five first-time buyers will still pay nothing from April.”

Toby Leek, President of NAEA Propertymark

“With the average house price higher than what was achieved last year, coupled with the fact that more buyers are looking to move home, now is a great time to consider putting your house on the market,” he says.

“Propertymark member agents reported that the number of new buyers registered per branch has on average increased year on year by 44%.

“The Stamp Duty changes due to commence in England and Northern Ireland from April are having the expected effect of high activity due to many people wanting to save themselves potentially thousands on their next home move.”

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