Zoopla have published their House Price Index for December, also looking at 2024 and 2025.  The report can be seen here, and here’s a concise summary of the housing market trends and outlook for 2024 and 2025 based on the provided data:

Strong Year for Sales, but Price Growth Remains Muted

1. Increased Activity in 2024:
   • Buyers and sellers returned to the market as more homes were listed, and mortgage rates eased.
   • The sales pipeline at the end of 2024 is the largest in four years, with 283,000 homes worth £104bn in progress—27% higher by volume and 30% by value compared to 2023.
2. Price Sensitivity Affects Growth:
   • Despite stronger sales, house price inflation remains modest at 1.9% for the year.
   • Buyers became more cautious in Q4 2024 due to uncertainty around mortgage rates and the Autumn Budget.
3. Regional Trends:
   • Northern Ireland leads with a 6.5% annual house price growth, followed by the North West (3.5%) and North East (2.8%).
   • The South East, East, and South West recorded the lowest inflation, under 1%.
   • The North-South price growth divide persists, driven by relative affordability.

Buyer’s Market Trends

• The gap between asking and agreed sale prices narrowed to 3.6% by December 2024, improving from 4.6% in late 2023.
• Buyers remain price-sensitive, influenced by uncertainties in mortgage rates and the economy.

Outlook for 2025

1. Moderate Price Growth:
   • UK house prices are projected to grow by 2.5% in 2025, with the North expected to outperform the South.
2. Market Dynamics:
   • Housing sales are forecast to rise to 1.15 million, up from 1.1 million in 2024.
   • Affordability constraints in higher-value southern markets will keep growth subdued, while regions with stronger income-to-price ratios see more robust growth.
3. Key Influences:
   • Mortgage rates are likely to remain steady, but economic and job market uncertainties may temper activity.

Long-Term Trends Since 2010

• London house prices have risen by 83% since 2010, while Northern Ireland has seen only a 19% increase.
• Household incomes grew by 58% during this period, allowing more growth potential in regions where house prices have lagged behind income.

The market remains resilient, with robust activity expected in 2025, though affordability and regional disparities will shape the landscape.