January is over and it’s time to start evaluating whether the predictions for 2025 are ringing true. Did people act on New Year’s resolutions to look for a new home? Was there the forecast rush to complete before the new stamp duty rates?
We have to rewind to set the scene. One of the more obscure barometers of the sales market is what happens on Boxing Day. It took Rightmove until January 2025 to crunch the numbers and the results broke records.
Boxing Day 2024 delivered
The portal recorded its busiest ever 26th December for three reasons. Firstly, the number of new properties listed by agents on Boxing Day 2024 was 26% higher than in 2023. Secondly, Rightmove experienced its most site visits for a 26th December. Thirdly, the number of movers sending enquiries to agents was 20% higher on Boxing Day 2024, compared to 12 months previously.
Off to a positive start
How did this activity impact the sales market? Rightmove’s first House Price Index of the year provided insights. To start, the average asking price of a new property coming to market jumped by £5,992. This 1.7% increase was the largest recorded in a January since 2020.
Those fuelling the Boxing Day bounce did progress their moving plans in January. Rightmove found the number of new homes coming to market was 11% ahead of the same period in 2024. Buyers also felt buoyant.
When comparing January 2025 with January 2024, there was a 9% increase in the number of potential purchasers contacting agents. The portal says home loan activity confirms their intent. In January, it recorded its busiest start to a year for ‘mortgage in principle’ applications.
Buyers will start 2025 having to pay more for a property than last year. Zoopla’s analysis revealed 15 million UK homes increased in value by £7,600 over 2024. The Nationwide agreed. It found house prices ended 2024 4.7% higher, when compared to 12 months previously.
Tenants will also want to know how much they’ll be paying in 2025. Early indications show there’s already change. The shift was revealed in Rightmove’s first Rental Trends Tracker of the year.
Rents show signs of cooling
Its quarterly figures released in January revealed the average rent outside of London dropped to £1,341 per month – a decrease of 0.2%. In London, rents have almost plateaued, rising just £1 over the last three months. The portal said this was a result of more homes available for rent.
Staying with renting and a significant amendment to the Renters’ Rights Bill was made in January. Landlords will be banned from accepting substantial amounts of upfront rent. They will retain the right to request one month’s rent in advance, alongside a security deposit of up to 5 or 6 weeks rent.
Rapid progress
January also saw the Renters’ Rights Bill progress towards Royal Assent. This is important for all landlords as one major element applies in Scotland and Wales, as well as England. This is the provision that will make it unlawful for landlords and letting agents to discriminate against tenants with children or who receive benefits.
The Renters’ Rights Bill has completed its reading and reporting stages in the House of Commons. With no time to lose, the Bill had its first reading in the House of Lords in January. The content is expected to become an Act this spring.
The Housing (Scotland) Bill experienced its own amendment in January. Stage 2 of the legislative process saw a revision to the country’s rent cap policy. It was confirmed that rent caps will increase via the Consumer Price Index plus 1% (up to a maximum of 6%).
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