February Market Update

The home moving market is back with a bang! January lived up to expectations as one of the busiest months in the property calendar. Here are 12 things we learnt in the last four weeks.

1) Boxing Day bounce confirmed: records were broken when Rightmove analysed traffic and enquiry levels from 26th December 2024. In January, it confirmed there were 26% more new homes listed for sale and a 20% increase in the number of enquiries sent to estate agents, when comparing Boxing Day 2024 to Boxing Day 2023. The portal also recorded its busiest ever Boxing Day for site visits.   Average asking prices trended upwards

2) Sellers felt confident: Rightmove’s January House Price Index revealed the UK’s average asking price increased, month-on-month, by £5,992 (1.7%). The average asking price, according to the portal, is now £366,189.

Values started 2025 on a high

3) Past increases set the scene: new buyers starting their search in 2025 found they need to be bolder with their budgets. Sold house prices increased 4.7% during 2024, with Nationwide saying the UK’s average house price started the year at £269,426.

4) Better choice for buyers: there was an 11% increase in the number of new properties for sale in January 2025, compared to the same month in 2024. In addition, there were 9% more active buyers. The number of sales agreed was also up 11%.

5) Rental values cooled: despite predictions for more expensive rents, 2025 got off to a subdued start. According to HomeLet’s latest Rental Index, rents fell by 1.8%, with a new UK average monthly rent of £1,284. The Rightmove team found rents outside of London fell 0.2% in January.

6) Renters’ Rights Bill moved forward: the Bill, parts of which affect Wales and Scotland as well as England, successfully left the House of Commons and had its first reading in the House of Lords. Experts predict the Bill will become an Act in either late March or April 2025.

Amendments were made

7) Upfront rent addressed: the Housing Minister announced that the Bill would  ban landlords and letting agents from taking large upfront rental payments from tenants. Advance rent payments will be limited to one month’s rent.

8) News for students & rental guarantors: lesser publicised amendments to the Bill included absolving rental guarantors of the obligation to cover the rent if the tenant dies. The Bill will also prohibit students from locking into rental agreements more than six months in advance.

9) Rents cap news announced in Scotland: looking north of the border and it’s the Housing (Scotland) Bill that seeks to reform the Scottish private rental sector. Stage 2 of the legislative process allowed for an important amendment in January. In the future, rent caps will increase via the Consumer Price Index plus 1% (up to a maximum of 6%).   Landlord optimism grew

10) A positive spin on property investment: the latest Pegasus Insight Landlord Trends report revealed 37% of landlords questioned said they felt ‘good’ or ‘very good’ about their property prospects. Interestingly, 62% said they planned to increase rents further this year.

11) Leasehold change announced: the Government started to implement the Leasehold and Freehold Reform Act 2024, with one of the first changes the abolishment of the two-year rule. This used to stipulate that someone wanting to initiate an enfranchisement or lease extension must have been the property’s registered owner for at least two years. Once changed, an enfranchisement or lease extension will be possible from day one as the property owner. This change comes into effect from the end of January 2025.

If you would like to know more about your local property market, please get in touch.