UK Property Market Update: House Prices Hit New Record High in January 2025

UK Property Prices Continue to Rise in 2025

The UK property market has started the year strong, with the latest data from Halifax showing a +0.7% increase in average house prices in January 2025, following a slight dip of -0.2% in December. This growth has pushed the average house price to a new record of £299,138. Although annual growth has slightly slowed to +3.0%, the market remains resilient, presenting new opportunities for property investors and buy-to-let landlords.

Regional Breakdown: Where Are House Prices Rising the Fastest?

House price inflation varies across the UK, with some regions experiencing more significant growth than others:

• Northern Ireland: Leading the UK with +5.9% annual growth, though down from December’s +7.3%. Average house price: £205,473.
• Wales: Prices increased by +3.6%, bringing the average to £227,397.
• Scotland: More modest growth of +2.4%, with an average price of £210,690.
• North East England: Now the fastest-growing region in England at +5.2% annually, with an average price of £178,696.
• London: Still the most expensive area, with an average house price of £548,288, up +2.8% from last year.

With property prices continuing their upward trajectory, investors should consider regional trends when planning their next move in the buy-to-let market.

Mortgage Rates and Affordability: What’s Next for Investors?

The Bank of England has announced its first base rate cut of the year, with further reductions expected. Mortgage rates are likely to remain between 4% and 5% in 2025, making it essential for investors to secure competitive financing. With inflation easing and household earnings outpacing cost increases, affordability is expected to improve gradually, further supporting property market growth.

Investor Outlook: Buy-to-Let Opportunities in 2025

Despite economic uncertainties, demand for UK property investment remains strong. Factors such as limited housing supply, stable rental demand, and improving mortgage conditions create a favourable environment for investors looking to expand their portfolios. Those considering buy-to-let properties should act strategically to maximise returns.

Start Your Property Investment Journey Today

With house prices reaching record highs and mortgage rates stabilising, now is the time to explore investment opportunities. Whether you’re a seasoned investor or entering the market for the first time, Regency Invest can help you navigate the UK property landscape.

Contact us today to discuss your investment goals. Visit www.regencyinvest.co.uk to learn more.