The UK housing market has started 2025 on a strong note, with house prices rising at their fastest rate since April 2023. According to Zoopla, house price inflation stood at 2% at the end of December, up from 0.9% a year ago. The average UK house price now sits at £267,700, reflecting a £5,200 increase over the year.
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How Much Can You Borrow?
If you’re considering entering the market, you might be wondering just how much you could borrow based on your finances. Our How Much Can I Borrow calculator is a great tool to help you understand your mortgage potential before you start house hunting. With varying mortgage rates and borrowing criteria, having an idea of your budget can give you an edge when navigating the competitive market.
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Northern Regions Lead House Price Growth
Northern Ireland is experiencing the most significant growth, with house prices surging by 7.7%, followed by North West England at 3.2%. Areas such as Wigan (5.6%) and Motherwell (4.9%) are among the fastest-growing local markets. By contrast, house price inflation in Southern England remains below 1.5%.
Employment growth in Scotland, Northern Ireland, and the North West has outpaced that of Southern England over the last two years, supporting stronger house price increases in these regions.
Housing Market Activity at a Seven-Year High
The market has seen a substantial boost in activity, with the number of homes for sale up 10% compared to last year. The average estate agent now has 31 homes listed for sale, the highest January total in seven years. Buyer demand is also 13% higher than this time last year, and agreed sales are up 12%, partly due to buyers rushing to complete purchases before the reduced stamp duty deadline at the end of March.
Zoopla expects house prices to rise by 2.5% in 2025, with 5% more sales taking place compared to 2024. Lower mortgage rates, rising wages, and base rate cuts are anticipated to further improve affordability throughout the year.
Need Help Navigating the Market? Start with Our Mortgage Calculator
At Contractor Mortgage Solutions, we specialize in helping contractors navigate the mortgage process. Whether you’re a first-time buyer or looking to remortgage, our expert team is here to ensure you get the best deal for your circumstances. Start by using our How Much Can I Borrow calculator to get a clearer idea of your borrowing power today. Ready to make your move? Contact us for personalized mortgage advice that works for you!