Welcome to this week’s edition of Property News Weekly, where we bring you the latest insights shaping the UK property market.
In this week’s property news, the Bank of England has cut its base rate to 4.5%, easing mortgage costs for many homeowners. The housing market is off to its strongest start in three years, with sales up 12% and average prices rising.
Meanwhile, a look back at 25 years of market change highlights soaring house prices and growing challenges for first-time buyers. As policy shifts and affordability debates continue, all eyes are on what’s next for the UK property sector.
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Property News this Week:
Today, the Bank of England’s Monetary Policy Committee cut its base rate from 4.75% to 4.5%—the lowest since June 2023—resulting in an immediate saving of about £29 a month for roughly 630,000 tracker mortgage households.
Variable rate customers can expect similar adjustments, while fixed-rate deals remain unchanged, though further cuts may eventually benefit new or renewing borrowers. Sarah Thompson of Mortgage Scout noted that some lenders have already reduced rates and launched deals for energy-efficient homes, aided by falling swap rates, even as affordability remains a concern.
Marking 25 years since the new millennium, the UK housing market has undergone dramatic transformation. In 2000, the average house price was £88,466, but buoyed by low mortgage rates and deregulation, it has surged to £329,988 today—a 257% overall increase (or 92% in real terms).
Prices had jumped to £190,032 by 2007 before the credit crunch and tighter lending rules slowed growth. London has seen prices soar 357%, with Walthamstow rising by 652% since 2000. Meanwhile, first-time buyers now face a tougher market as average prices more than triple from £68,700 to £255,400, demanding higher borrowing and larger deposits, and greater family support.
Prices had jumped to £190,032 by 2007 before the credit crunch and tighter lending rules slowed growth. London has seen prices soar 357%, with Walthamstow rising by 652% since 2000. Meanwhile, first-time buyers now face a tougher market as average prices more than triple from £68,700 to £255,400, demanding higher borrowing and larger deposits, and greater family support.
According to property website Zoopla, the UK housing market is off to its strongest start in three years, with new sales up 12% in the four weeks ending 24 January 2025 compared to last year, and the average house price now at £267,700—a £5,200 increase from last year following a 2023 decline.
Zoopla expects house price inflation to remain in check despite regional disparities, with executive director Richard Donnell noting that early signs suggest a promising year, supported by rising sales volumes, manageable stamp duty increases, and a broader range of properties, even as mortgage rates climb.
Zoopla expects house price inflation to remain in check despite regional disparities, with executive director Richard Donnell noting that early signs suggest a promising year, supported by rising sales volumes, manageable stamp duty increases, and a broader range of properties, even as mortgage rates climb.
That concludes this week’s updates. If you have any thoughts or questions about these headlines, feel free to reply—I’d love to chat with you about the latest market trends and discuss your investment goals.
I hope you have a great weekend.
