The UK housing market showed signs of cautious recovery in November, with the average house price rising to £267,500, according to data from Zoopla. This figure reflects a 1.9% increase

compared to the same time last year, as buyers rushed to complete purchases ahead of the impending expiration of stamp duty discounts.

Zoopla’s findings align with data from the Office for National Statistics (ONS), which earlier reported a £10,000 year-on-year increase in UK house prices as of October, bringing the average property value to £292,000.

Price growth has been recorded across all regions of the UK. Northern Ireland led the way with a 6.8% increase, bringing its average house price to £191,000. Scotland followed with a 5.5% rise to £197,000, while Wales saw a 4% growth, reaching £222,000. England experienced a 3% increase, with the average property price climbing to £309,000. The South East recorded the smallest growth, at 0.7%.

Sales Surge as Deadline Looms

The housing market experienced a notable uptick in activity, with Zoopla reporting a 30% increase in the sales pipeline compared to the same period last year. Approximately 283,000 homes worth an estimated £104 billion are projected to reach completion in 2025.

This surge is partly driven by the April 2025 deadline for stamp duty discounts, prompting buyers to finalize deals sooner. However, affordability concerns have tempered the market, with agreed sale prices averaging 3.6% below asking prices in recent weeks, up from 3.2% in July.

Interest Rates and Affordability Constraints

Elevated mortgage rates continue to impact buyer confidence. The Bank of England recently maintained its base interest rate at 4.75% amid broader inflation concerns, influencing borrowing costs and adding pressure to affordability constraints.

"More sales have supported a return to house price growth across the country, but buyers have become increasingly price-sensitive as mortgage rates drift higher," noted Richard Donnell, executive director at Zoopla.

Donnell predicted a moderate pace of house price growth in 2025, estimating a 5% increase in overall home moves.

Trends in Buyer Behavior

Market conditions reflect growing caution among buyers. Over the summer of 2024, confidence was higher as mortgage rates softened, leading to agreed prices that were, on average, 3.2% below asking prices. By contrast, the gap widened in late 2023, reaching 4.6% during a period of modest price declines.

Zoopla highlighted the gap between asking and agreed prices as a key indicator of market health. For instance, during the pandemic in 2021, buyers often paid the full asking price to secure properties, reflecting stronger market demand.

Looking ahead, Zoopla characterized 2025 as likely to remain a "buyer’s market," with affordability challenges and heightened caution among buyers expected to moderate house price growth.