Sales transactions to rise next year says upbeat Zoopla

The sales market has returned to growth and both prices and volumes are expected to increase in 2025 despite budget headwinds, says the latest Zoopla House Price Index.

The portal’s data boss Richard Donnell (pictured) says the market has returned to growth in all regions and countries this year, with an average growth rate of +1.5% during the 12 months to October 2024, up from -1.2% last year.

The average house price is now £267,200, having increased by 1.5% over the last 12 months.

Demand higher

Sales agreed over the last four weeks are also up (19% year-on-year), with buyer demand 25% higher and the sales market on track for 1.1m sales completions over 2024 – 10% higher than in 2023.

Looking ahead, Donnell is expecting sales completions in 2025 to be supported by a robust sales pipeline, which is already 30% larger than it was this time last year.

As a result of postponed home moves, an ageing population, rising running costs and changing working patterns, he is predicting sales volumes will increase by 5%, reaching 1.15 million.

First-time buyers, Donnell says, will remain the largest buyer group, supporting housing chains and helping existing homeowners to move.

Higher income growth and lower mortgage rates have helped reset housing affordability faster than many expected.”

And improved affordability through wage growth and lower mortgages will open up the opportunity for continued modest growth in house prices, which it is expecting to increase by 2.5% in 2025, provided mortgage rates average 4.25% over the period.

Donnell adds: “The housing market has been resilient in the face of higher borrowing costs over the last two years.

“Higher income growth and lower mortgage rates have helped reset housing affordability faster than many expected over 2024. This has supported an increase in the number of sales and house prices over the year which we expect to continue over 2025.”