At BeSure Surveyors, we believe staying informed is key to making confident property decisions. Whether you’re buying, selling or investing, understanding the current UK housing market trends is crucial—especially with recent shifts in house prices, mortgage activity, and interest rates.

In this quarterly market update, we compare the first quarter of 2025 with the same period in 2024, focusing on property sales, mortgage approvals, average house prices, and wider market conditions.

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Property Sales Continue to Climb in Q1 2025

The start of 2025 saw a sharp increase in property sales volume. January 2025 recorded over 140,000 new property listings—the highest January figure in ten years—marking a 7.3% increase compared to January 2024. Sales agreed were up by 17.1% year-on-year, with particularly strong growth in the East Midlands and East of England.

This momentum was partly driven by buyer urgency ahead of stamp duty changes, which prompted many to complete transactions before thresholds reverted. By March 2025, mortgage completions surged by 50% compared to February, according to industry reports.

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Mortgage Approvals Recover Amid Interest Rate Drop

After a slow 2023, mortgage approvals picked up in late 2024 and carried into Q1 2025. The Bank of England reported over 68,000 mortgage approvals in October 2024—the highest monthly figure since mid-2022. This upward trend continued into 2025, supported by greater buyer confidence and lender incentives.

The base interest rate was reduced from 5.25% to 5.0% in August 2024, making mortgages more affordable. On average, monthly mortgage payments are now £1,328, slightly less than the UK average rent of £1,356—making buying a more viable option in many areas.

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Average UK House Prices in Q1 2025

The average UK house price in early 2025 was £296,699, up from £292,000 in Q1 2024. However, following the end of temporary stamp duty cuts, March 2025 saw a slight dip in prices—down 0.5% month-on-month, according to Halifax.

Regionally, Northern Ireland and the North West led the way in annual house price growth, while London and the South East saw flatter price movement due to affordability constraints.

Key points:

• Average house price in March 2025: £296,699
• Annual price growth: +1.6% year-on-year
• Regional hotspots: East Midlands, North West, Northern Ireland

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Current UK Housing Market Conditions

The UK property market in Q1 2025 has shown signs of resilience and recovery, supported by:

• Increased mortgage lending confidence
• More competitive mortgage rates
• Pent-up demand from 2023’s slowdown
• Adjustments in stamp duty tax policy

However, affordability remains a concern for many buyers. The average upfront cost of buying a home, including deposits, fees, and moving expenses, has risen to £13,530 higher than five years ago. This continues to impact first-time buyer activity in higher-priced regions.

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What This Means for Buyers and Sellers

If you’re considering entering the market in 2025, timing and information are key. With interest rates stabilising and buyer activity increasing, competition is heating up—especially for well-presented, energy-efficient homes.

This is where a professional RICS Level 2 Survey becomes essential. A clear understanding of a property’s condition can make or break a deal, especially as buyers become more cautious and lenders tighten criteria.

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Book a RICS Level 2 Survey with BeSure Surveyors

At BeSure Surveyors, we specialise in RICS Level 2 Home Surveys, helping homebuyers across the UK understand what they’re purchasing—before it’s too late. Whether you’re buying your first home or expanding your portfolio, we deliver clear, honest, and reliable advice.

Our surveys include:

• Detailed inspection of visible defects
• Assessment of roof, damp, structure & services
• Easy-to-read report with repair priorities
• Expert insights based on local market conditions

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Contact BeSure Surveyors Today

Want peace of mind before you purchase? Let us help you move forward with confidence.

Call: 0333 577 7769

Email: info@besuresurveyors.co.uk

Visit: info@besuresurveyors.co.uk

Be informed. Be protected. BeSure.