The UK property market had a stellar year in 2024, overcoming past economic challenges and ushering in a period of stability and growth. Predictions from the end of last year anticipated continuous growth in house prices and rents, more affordable borrowing, low construction rates, and minimal legislative impact—all favorable conditions for property investors. The latest data from Zoopla supports this positive outlook, suggesting that early 2025 investment could be a winning strategy.

Surge in Market Activity

Zoopla’s December 2024 UK House Price Index reveals that market activity was on the rise by year-end, with a notable increase in both buyers and sellers. Comparing December 2023 to December 2024, we see:

  • 21% rise in buyer demand
  • 23% increase in sales agreed
  • 18% more new homes on the market
  • 10% growth in the overall stock of homes for sale

Additionally, there was a 30% annual increase in homes within the sales pipeline, highlighting heightened competition in the market.

Northern England: A Hotspot for House Price Growth

Investors will be pleased to learn that Zoopla recorded a 2% overall house price growth in 2024. This comes after two years of stagnation or decline in certain regions. For 2025, Zoopla predicts a further 2.5% increase in average UK house prices, but regional variations are essential to consider.

While London and the South East saw significant growth over the past 15 years (83% and 70% respectively), it’s now the northern regions that offer the most promising investment opportunities. Northern markets feature:

  • Lower entry prices
  • Faster population growth
  • Lower construction rates
  • Higher demand for property

Cities like Manchester (3.1%) and Liverpool (2.6%) are expected to outpace the UK average growth in 2025, with further acceleration projected until at least 2029. Consequently, the North West emerges as the UK’s top property investment region, with developments such as Vivere, W Residences, Central Liverpool, and Hordan House being prime opportunities.

Increasing Price Sensitivity Among Buyers

Zoopla’s latest data indicates that buyers are becoming more price-sensitive in 2025, with the gap between asking and agreed sales prices narrowing to just 3.6%. This tighter gap, compared to the 4% pre-pandemic average, signifies increased market competition.

Richard Donnell, Zoopla’s executive director of research, expects sufficient house price inflation to support more home moves. Despite market growth, investors can still secure below-market deals through off-plan properties, which are typically priced lower than the average market cost. This strategy allows buyers to lock in today’s prices and benefit from future house price increases, while also enjoying reduced borrowing costs post-construction.

A Prime Time to Invest

With Zoopla’s analysis pointing to rising prices throughout 2025, now is an opportune moment to invest in property and maximize returns. For more insights into the UK investment market and to explore the latest property opportunities, contact our team today and embark on your investment journey in 2025.