Housing market starts 2025 with a bang

The number of new properties coming to market is 11% ahead of the same start-of-the-year period last year. In addition, the number of buyers contacting estate agents about properties for sale since Boxing Day is 9% ahead of last year, and the number of sales being agreed over the same period is up by 11%.

The company’s data also shows that average asking prices have risen by 1.7%, or £5,992 this month to £366,189, which is the biggest jump in prices at the start of a year since 2020. However, new seller asking prices are still nearly £9,000 below May 2024’s record, which Rightmove says reflects buyer affordability constraints.

Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 18 offices in West and North Yorkshire, said: “Across our offices we’ve listed dozens of homes for sale during the first few weeks of January, which supports Rightmove’s findings. Crucially, we’ve also seen an increase in buyer enquiries in recent weeks, which all points towards 2025 being a healthy year for the housing market.

“Any further interest rate cuts are likely to stimulate the market further, although it’s clear that rates aren’t going to fall quite as fast as many would like. Despite this though, we are seeing healthy numbers of viewings, offers and sales, as well as sellers being more realistic about their pricing expectations, which is vitally important in a market where there’s suddenly more choice for buyers.”

Colleen Babcock, property expert at Rightmove, said: “New sellers have started the year with a bang, with a record number coming to market not only on Boxing Day itself, but across the start of the year to date. We’ve also seen a strong start to the year in new seller asking prices, though given the higher-than-anticipated seller competition, we would expect this to slow down over the next few months.

“The record number of sellers we’re seeing is a double-edged sword. It’s encouraging to see so many sellers with the confidence to come to market, providing buyers with fresh choice. However, with lots of homes for buyers to consider, sellers will need to work even harder to stand out from the crowd and attract a buyer. This could be with a tempting asking price, standout home features, immaculate presentation of the home, or a combination of all of these. It’s vital that in a competitive market, sellers take on the recommendations of their agent, particularly when it comes to setting a realistic price.

“It’s important to look at the bigger market picture, despite the positive early lead indicators that we’re seeing. Many buyers are still affordability-stretched, with high mortgage rates restricting borrowing power and limiting what they can afford to pay. Meanwhile, first-time buyers have seen support schemes reduce and some also face higher stamp duty fees from April, all while contending with record rents and trying to save up for a deposit. Rightmove’s early-year snapshot shows a promising start to 2025. However, the market needs a boost for that momentum to be sustained, in the form of early and ongoing bank rate cuts, which should hopefully help to reduce mortgage rates. Some further support for first-time buyers would also be welcomed, particularly in more expensive areas of the country.”

Dacre, Son & Hartley was founded more than 200 years ago and is Yorkshire’s largest independent estate agent with 18 offices across North and West Yorkshire.