Steady
Price Growth

The property market is showing positive growth, with the average asking price increasing by 0.5% this month, an uplift of £1,805, bringing the average to £367,994. Year-on-year, prices have risen by 1.4%, indicating steady market momentum. While the North West has seen a robust 3% price rise, London’s growth has been more modest at just 1%. The latest house price increase was slightly subdued due to buyers’ cautiousness following the Autumn Budget and changes to Stamp Duty Land Tax (SDLT).

For investors, flats present an attractive opportunity, with the average price of a flat (£191,300) being 67% lower than that of a house (£319,500). Flats, especially new builds, offer better value for money, ideal for those with a smaller deposit or those seeking higher-yielding properties. Notable regional growth includes Manchester at 3.4%, Sheffield at 2.7%, and Leeds at 2.1% – making these cities prime candidates for investment opportunities.

An Active Market

As we kick off 2025, the market is showing strong and sustained growth, with key indicators pointing to a confident and active market. There has been a remarkable 15% increase in the number of sales agreed compared to this time last year, a clear sign that both buyers and sellers are eager. 

Year-on-year, buyer demand has risen by 11%, reflecting an optimistic outlook from investors and homebuyers alike, who are actively searching for new opportunities. Moving activity is also holding steady, with the number of new sellers entering the market now 13% higher than at this time last year. 

This influx of new properties, combined with buyer demand being 8% ahead of last year, underscores the continued appeal of the market. The growth in sales agreed further demonstrates that transactions are happening at a strong pace, with investors and buyers keen to secure properties. 

For investors, this surge in activity signals a thriving market with ample opportunities for growth, higher yields, and a steady flow of properties being bought and sold across the board.

Increasing
Housing Supply 

February also saw a 10% year-on-year increase in the flow of new supply, which is helping to maintain a steady influx of properties. This steady stream of new listings offers a degree of stability, ensuring that prices remain balanced in the face of growing demand. 

However, the market is still grappling with a chronic housing shortage, meaning that supply continues to fall short of the increasing demand. This imbalance presents a unique opportunity for investors, as limited housing stock paired with consistent demand will likely support long-term price growth and strong rental yields. 

For those looking to capitalise on market conditions, this continued supply shortage coupled with robust demand makes for an attractive investment landscape.

Base Rate Cut

In February, the Bank of England made a strategic move by reducing the base rate to 4.5%, down from 4.75%. This decrease in interest rates presents an excellent opportunity for investors, as it lowers the cost of borrowing and can enhance the profitability of property investments. 

With cheaper financing options available, investors may find it easier to secure favourable loan terms, potentially boosting their returns. As interest rates ease, demand in the property market is likely to increase, providing a favourable environment for both capital growth and rental yields. 

For those looking to maximise their investment potential, this shift in the base rate offers a timely opportunity to capitalise on more affordable financing and a market poised for continued strength.

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