As we step into 2025, the UK property market has shown remarkable resilience and growth, ending 2024 on a high note. According to the latest data from Nationwide Building Society, house prices rose by 4.7% in December. This marks an acceleration from the 3.7% growth recorded in November. This surge in property values reflects a stronger end to the year, with the average house price now standing at £269,426.
Resilient Demand Amid Economic Uncertainties
Despite perhaps broader deepening economic uncertainties, the UK housing market has demonstrated robust demand. This growth is particularly noteworthy given the usual seasonal slowdown in the property market during the winter months.
Rob Aberdein, Director at Simpson & Marwick, commented, "The December figures are a clear indication of the underlying strength in the housing market. Locally, demand for quality property across Edinburgh and the Lothians remains strong. High quality larger properties in the most desirable areas are still in chronic under supply - leading to some exceptional prices being achieved by our clients."
Regional Variations and Market Dynamics
While the overall picture remains positive, regional differences are notable. Some areas elsewhere have seen price increases of over 17%, while others have experienced small declines. This disparity underscores the dynamic nature of the UK property market, where local factors play a significant role in shaping price trends.
As 2025 begins, rising living costs and inflation could encourage some buyers to take a measured approach, creating opportunities (perhaps aided by interest rate reductions) for those buyers who have perhaps been priced out until now. If demand slows due to fewer buyers being active, sellers may feel pressure to lower prices or offer more favourable terms to attract buyers. This scenario could make 2025 a ‘buyer’s market’, where those still in the market might find it easier to negotiate better deals. However, long-term demand for quality housing remains strong and supply continues to be mismatched.
A Balanced and Sustainable Market Ahead
Despite some challenges, 2025 perhaps therefore presents a chance for the local property market to stabilise and achieve more sustainable growth. Buyers and sellers alike will adapt, finding opportunities even amid uncertainty. This is paving the way for a more balanced housing market.
