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    Market Reports

    February Property Market Analysis

    6 months ago
    February Property Market Analysis

    The new year got off to a busy start across all our departments. We eagerly awaited the first property reports of 2025 to assess the health of the wider market. The verdict? There are many positives to take away, starting with a sales market bubbling with interest.

    There were heartening increases across the board when looking at Rightmove’s key January statistics. Much of the confidence was driven by another successful Boxing Day. The portal said it was the busiest ever 26th December for new seller activity, with a record number of new properties listed for sale by estate agents.

    More ‘for sale’ signs

    This figure was 26% higher on 26th December 2024 than the same day in 2023. Also higher was the number of enquiries sent to estate agents about homes for sale – a 20% increase when compared to the previous year’s Boxing Day. There were also a record number of visits to Rightmove’s website.

    Sellers adjusting asking prices

    Increases spilled over into Rightmove’s January House Price Index and new homes being marketed for the first time start the year more expensive. In fact, the average asking price increased by 1.7% (+£5,992) at the beginning of 2025. The average asking price on Rightmove is now £366,189.

    With asking prices on the rise, what about actual sold values – the price paid upon completion? Nationwide’s latest house price index showed we started 2025 with an average house price of £269,426. Values had increased 4.7% over the course of the last 12 months, with all UK regions experiencing price growth.

    Boxing Day certainly supercharged the sales market. In January, Rightmove found the number of new properties coming to market was 11% ahead of the same period in 2024. Buyers have also been active, with 9% more potential purchasers contacting agents about properties for sale. As a result, the number of sales being agreed was up 11%.

    The reverse was true when it came to the UK’s rental values. Two separate sources have seen rents start to fall. The latest HomeLet Rental Index found the average UK rent decreased by 1.8%, with a new monthly average of £1,284.

    Rightmove’s January Rental Trends Tracker told a similar story. It said rents outside of London fell 0.2%, when compared to the previous quarter, with a new average monthly rent of £1,341. Rents in London increased by just £1 (0.1%), representing slowing growth. The capital’s average rent is now £2,695 per month.

    Renter’s Rights Bill updated

    January was an important month in terms of future legislation. The Renter’s Rights Bill took a huge step forward at the start of the year. It successfully passed through the House of Commons and now awaits its second reading in the House of Lords.

    It didn’t make progress unchanged, however. The Government used the third reading to make a number of amendments. The most impactful was a ban prohibiting landlords and letting agents from taking large, upfront rental payments. Advance rent payments will be limited to one month’s rent.

    Amendments for students & guarantors

    Restrictions on advance rental agreements also changed. The Bill now states that students can no longer be locked into rental agreements more than six months in advance. There’s also an alteration affecting rental guarantors – they will no longer be liable to pay the rent if the tenant dies.

    Scotland is looking to enact its own rental reforms, with the Housing (Scotland) Bill at Stage 2 of the legislative process. One of the country’s most contentious issues – rent caps – was tackled in light of the current lettings market. It was confirmed that rent caps will increase via the Consumer Price Index plus 1% (up to a maximum of 6%).

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

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    More Articles

    July Property Market Analysis

    July Property Market Analysis

    Published about 1 month ago

    It certainly was a flaming June but did the property market also run hot? We have digested the information and figures published in the month. Here’s the current state of play as we head into the second half of 2025. 

    Read More
    June Property Market Analysis

    June Property Market Analysis

    Published about 2 months ago

    Where are we moving to, how much is it costing us and what’s the market like? We take a look at the key property reports and research released in May to provide you with a sales and lettings overview. Let’s start with house prices.

    Read More
    May Property Market Analysis

    May Property Market Analysis

    Published 3 months ago

    While spring is usually one of the property market’s busiest seasons, 2025 looks set to be a little different. As well as being brisk for both sales and lettings, this April was an important time for setting the scene ahead of summer. Future property prospects look fascinating.

    Read More

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