House Price Index January 2025

Market Overview

New Seller Activity

Record Listings Since Boxing Day

A record number of new sellers have listed properties since Boxing Day, giving buyers the highest choice since 2015. The number of new properties coming to market is up 11% compared to last year.

Buyer Interest & Sales Growth

Buyer demand remains strong, with a 9% increase in buyers contacting estate agents since Boxing Day. Additionally, the number of sales agreed is up by 11%, suggesting a positive start to 2025.

Mortgage Market Trends

Fixed Mortgage Rates Remain High

The average five-year fixed mortgage rate is 4.75%, compared with 4.78% a year ago. The two-year fixed rate has dropped slightly to 4.97% from 5.08% in 2024.

Impact of Interest Rates & Stamp Duty

Uncertainty around future interest rate cuts and the upcoming stamp duty changes on 31st March could affect buyer decisions. First-time buyers, in particular, may be impacted by higher costs in expensive regions.

Regional Trends

North West Property Market

Strong Start to 2025 in the North West

The North West continues to be a key area of growth in the UK housing market, with strong demand from buyers and an increasing number of sellers entering the market. Prices in the region have risen steadily, with affordability remaining a driving factor in buyer decision-making.

Buyer Demand & Sales Agreed

Compared to last year, the North West has seen an 11% increase in sales, reflecting positive market momentum. Areas such as Lancashire, Merseyside, and Greater Manchester remain attractive due to their relatively affordable house prices and strong local economies.

Farrell Heyworth Insights

As one of the leading estate agents in the North West, Farrell Heyworth has seen heightened activity in key locations. The combination of well-priced properties and a steady flow of new listings has led to competitive buyer interest. Many properties are receiving multiple offers, particularly in sought-after areas.

Challenges in the North West Market

Despite the strong start, some challenges remain. Mortgage affordability remains a concern, with many first-time buyers struggling to secure loans due to high interest rates. Additionally, the upcoming stamp duty changes could impact transaction volumes in the mid-range property sector.

Expert Insights

Challenges for Buyers

Colleen Babcock, property expert at Rightmove, notes that while early indicators are positive, affordability remains a key challenge due to high mortgage rates and increasing stamp duty costs.

Market Outlook

Jordan Halstead, CEO at Jordan & Halstead Estate Agents, states that 2025 is expected to be better than 2024, but the direction of mortgage rates will heavily impact buyer confidence.

Despite a promising start to 2025, uncertainties around interest rates and affordability remain key challenges. The North West market, in particular, is showing resilience, with strong buyer demand and competitive pricing. Sellers should remain mindful of pricing strategies to ensure continued market activity. Farrell Heyworth continues to provide expert guidance to buyers and sellers navigating the evolving property landscape.