Home Asking Price Index, January 2025: prices bounce into 2025, London leads the charge
England and Wales asking prices rose 0.3% in the month, with London leading regional growth at 0.7%, while unsold stock reached 456,216, the largest January figure since 2015.
This is the January 2025 edition of the Home Asking Price Index, released on 15 January 2025, under the headline:
Prices Bounce into 2025: London Leads the Charge
The headlines and summary below are the report's own words, with the key figures as it published them, followed by the report's charts and regional tables as printed.
Headlines
- Asking prices begin their seasonal ascent, rising 0.3% since last month across England and Wales. Annualised home price growth is now 1.9% overall.
- Seasonal price rises were observed in all English regions, while Scotland and Wales registered no change since last month. The largest rise was in London (0.7%).
- The UK property market continues to indicate significant momentum. Property turnover remains higher than during most of the last ten years and the Typical Time on Market is significantly lower than in pre-lockdown January 2020.
- The unsold sales stock count for England and Wales fell again during the last month, by around 9,000 properties. However, the current total of 456,216 is the largest such January figure since 2015.
- The total number of new instructions entering the market during December 2024 was 8% more than during December 2023. London saw the highest regional rise of 25%, a massive increase in supply.
- The North East retains its top position in regional property market growth, albeit with the year-on-year gain decreasing to 5.1%. In second place is Yorkshire at 4.6%.
- The East of England remains the worst performing region, indicating a tiny rise (0.4%) over the last twelve months.
- Overall, when taking inflation into account, the sales market has still yet to achieve real growth.
- The annualised national growth for asking rents is just 1.5% overall. This mix-adjusted average is affected disproportionately by London's rent falls (-1.2%). However, the East Midlands and Yorkshire indicate double-digit growth year-on-year.
- The City of London followed by Hackney indicate the largest declines in asking rents of all London boroughs, with annualised rental falls of 19.1% and 8.7% respectively. Meanwhile, rents in Kensington and Richmond are 10.9% and 6.8% higher than a year ago.
Summary
The UK property market begins the new year on a note of cautious optimism. Prices are rising in line with seasonal expectations and buyer activity is picking up. Increased supply attests to the fact that greater numbers of vendors are willing to commit, especially in London. Whether or not demand will be able to match this level of supply is uncertain, especially after the increase in stamp duty from 1st April 2025.
For the time being, the vital signs of the UK property sales market indicate a positive state of health overall. The volume of property moving through the market is higher than during most of the five years prior to the pandemic. Room for significant price growth appears limited due to both affordability constraints (the cost of borrowing and stamp duty) and increased supply. The mix-adjusted average asking price for London and the southern regions still remains lower, by a large margin, than the peak pricing observed in the summer months of 2022. Therefore, prices may not return to these levels in the lower performing regions in 2025.
Key figures
| Measure | Figure |
|---|---|
| Monthly change in asking prices | +0.3% |
| Annual change in asking prices | +1.9% |
| Unsold sales stock | 456,216 |
| Change in new instructions | +8% |
| Asking rent annual growth | +1.5% |
Figures are for England and Wales unless the report states otherwise, as published in the edition.
Charts from the report
Source: Home.co.uk Asking Price Index, January 2025, Indexed to May 2004 (Value=100).
Source: Home.co.uk Asking Price Index, January 2025
Source: Home.co.uk Asking Price Index, January 2025 and ONS [RPI ex. housing].
Source: Home.co.uk Asking Price Index, January 2025
Source: Home.co.uk Asking Price Index, January 2025
Source: Home.co.uk Asking Price Index, January 2025
Source: Home.co.uk Asking Price Index, January 2025. Average = Mean (days), Typical = Median (days).
Regional tables
UK Asking Prices, Jan-25
| Region | Average Asking Price | Monthly % change | Annual % change |
|---|---|---|---|
| Scotland | £231,708 | 0.0% | 4.1% |
| North East | £200,210 | 0.3% | 5.1% |
| Yorks & The Humber | £255,375 | 0.3% | 4.6% |
| England & Wales | £356,167 | 0.3% | 1.9% |
| North West | £270,480 | 0.4% | 2.7% |
| West Midlands | £302,886 | 0.2% | 2.6% |
| East Midlands | £282,686 | 0.1% | 1.6% |
| East | £390,034 | 0.1% | 0.4% |
| Wales | £270,844 | 0.0% | 2.6% |
| Greater London | £547,289 | 0.7% | 1.6% |
| South East | £442,339 | 0.2% | 1.2% |
| South West | £378,278 | 0.3% | 1.7% |
UK Time on Market, Jan-25
| Region | Average Time on Market | Typical Time on Market | Annualised % supply change |
|---|---|---|---|
| Scotland | 220 | 110 | -3% |
| North East | 179 | 104 | -5% |
| Yorks & The Humber | 170 | 111 | 10% |
| England & Wales | 190 | 112 | 8% |
| North West | 179 | 107 | 13% |
| West Midlands | 181 | 110 | 8% |
| East Midlands | 170 | 108 | 8% |
| East | 175 | 106 | 6% |
| Wales | 206 | 127 | 6% |
| Greater London | 213 | 108 | 25% |
| South East | 179 | 105 | 6% |
| South West | 181 | 113 | 9% |
From the director's commentary
"I suspect that higher bond yields are here to stay, as investors need a risk premium given the state of the UK's finances, and therefore, so too is costlier borrowing for home buyers."
Doug Shephard, Director at Home.co.uk
Read the full January 2025 edition (PDF, 11 pages)
About the Home Asking Price Index
The Home Asking Price Index measures the change in the prices sellers ask for residential property across England, Wales and Scotland. Today it is computed every month from around half a million advertised homes and is mix-adjusted, so a change in what happens to be on the market does not move the figure; earlier editions state the sample they were built from. Because an asking price is set months before a sale completes, the index runs around five months ahead of completed-sale measures such as the UK House Price Index.
Every edition in the archive, back to October 2006, is listed on the index page. How we measure the UK property market explains the listing data behind it, and today's figures by area are on house prices and rental prices.
Text and figures above are quoted from the January 2025 edition as published, with punctuation normalised for the web, and are not revised. Later editions may restate them.
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