The housing market saw a strong start in 2025, with new sales agreed up 12% from the previous year, according to Zoopla’s House Price Index (HPI).
Buyer demand rose by 13%, and there were 10% more homes for sale than a year ago.
UK house price inflation reached 2%, up from 0.9% last year.
The average UK house price is now £267,700, a £5,200 increase from 2024, which followed a decline of £2,400 in 2023.
Northern Ireland saw the fastest growth at 7.7%, followed by North West England at 3.2%.
The North West, Scotland, and Northern Ireland experienced faster job growth compared to Southern England.
In contrast, house prices in South England rose by less than 1.5%.
With the end of temporary stamp duty reliefs in April, first-time buyer demand increased by over a third in price bands between £300,000 and £625,000, especially for those purchasing in London and South East England.
For homes below £300,000, first-time buyers remain exempt from stamp duty, while for properties over £625,000, no relief is available.
Richard Donnell, executive director at Zoopla, said: “The first few weeks of each year tend to provide a clear indication of how the rest of the year is likely to unfold.
“2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.
“It is important not to read too much into the increase in stamp duty for more buyers from April as three in five first-time buyers will still pay nothing from April.
Donnell added: “The extra costs to homeowners remain manageable and unlikely to reduce sales but they will keep price rises in check.
“The healthy stock of homes for sale will keep price rises in check and we are forecasting average UK house prices will rise by 2.5% in 2025 with 5% more sales than last year at 1.15m.
“Rising incomes and base rate cuts will improve affordability and support consumer sentiment.”
Malcolm Prescott, managing director of Webbers Estate Agents, said: “Fundamentally the UK property market thrives on confidence and positive sentiment and whilst we have had to endure negative press for a while we are now seeing customers positively embracing property hearing that prices are set to rise, albeit marginally (4/6%) and affordability seems to be back given the more consistent mortgage interest rates.
Prescott added: “January has started very positively here in the South West, with an abundance of new listings and sales to match.
“In particular, we have seen keen interest in our new homes developments in North Devon and Cornwall, with green credentials, outside space and “choice” still high on the agenda from our broad range of buyers.”
