The UK property market showed an impressive recovery in 2024, despite earlier forecasts of price declines and a challenging economic climate. This is evident from the latest House Price Index by Zoopla, a leading UK property research platform. According to the report, the average house price in the United Kingdom increased by 1.9% to £267,500. This rise highlights the resilience of the market following a period of stabilization and price corrections. Zoopla expects a further price increase of 2.5% in 2025.
2024: The Year of Recovery
The recovery in 2024 was driven by a combination of factors:
- Rising housing supply – In the second half of 2024, more properties came onto the market, creating a better balance between supply and demand.
- Lower mortgage rates – Historically high interest rates stabilized and even declined slightly, encouraging buyers to take action.
- Increase in transactions – The number of agreed transactions rose by 23% in the final four weeks of 2024 compared to the same period a year earlier.
2025: Continued Recovery Expected
Zoopla expects the UK housing market to continue its recovery. The number of property transactions is projected to rise further to 1.15 million, with an average price increase of 2.5%. Property platform Savills even forecasts a price growth of 23.4% over the period 2025–2029.
This growth is being driven by declining mortgage rates, improved affordability, and initiatives aimed at increasing housing supply. However, Zoopla also highlights several factors to consider, such as potential economic uncertainty, changes in fiscal policy, and persistent regional differences.
Regional differences
The gap between the North and the South in terms of price growth is expected to persist in 2025, with the North of England and the Midlands forecast to outperform London and the South East.
Savills predicts that the North West region will experience the strongest growth, with an expected price increase of 29.4% over five years. London and the South East are expected to lag behind, with projected growth of 17.1% and 17.6% respectively.
Implications for Dutch investors
For Dutch investors, the recovering UK property market presents a unique opportunity. The combination of rising house prices, a strong rental market, and relatively stable regulation makes the UK real estate market attractive for building wealth.
In this context, Albion primarily focuses on areas with the highest growth potential, such as the Midlands, South Wales, and the North of England.
Want to know more?
2025 is the year to take advantage of the opportunities in the UK property market. Albion Invest is ready to assist you, enabling you to build wealth with British real estate in a worry-free manner.
Download our whitepaper or information guide, or email us at info@albioninvest.nl!
