Understanding the Current UK Housing Market: Key Economic Indicators
The UK’s housing market shows change. The House of Commons Library published data on house prices, mortgage approvals, and housing starts. This data helps us see the market now.
House Prices on the Rise
The UK House Price Index shows house prices grew by 4.9% from January 2024 to January 2025. The average price went up by 0.7% from December 2024 to January 2025 on a seasonally adjusted basis.
House prices differ by region. The North East, Northern Ireland, and North West saw the strongest growth. Their numbers point to more demand in these areas. Note that Northern Ireland’s data covers a different year ending in Q4 2024. In London, the South West, and the East of England, prices grew slowly. This slow growth hints at a market that may have reached its peak in these areas (UK House Price Index).
Mortgage Approvals Experience Fluctuations
The Bank of England says mortgage approvals for buying a house hit a very low point during the May 2020 lockdown. In January 2025, there were 66,189 approvals. This figure is 18% higher than the year before and stayed about the same as in December 2024. This change might show that buyers feel more ready to join the market after a long period of low interest (Bank of England).
This information is useful for those buying HMO properties. More approvals mean that new buyers and investors might soon enter the market.
Housing Supply Challenges
The number of new houses shows a mixed scene. After the lockdowns, housing starts and completions grew fast. New completions in Q4 2024 numbered 36,830. This total is 9% lower than the same season last year, even though it was 2% higher than Q3 2024. At the same time, new build starts went up. In Q4 2024, there were 30,860 housing starts; this is 52% more than in Q4 2023 (Ministry of Housing, Communities and Local Government).
The drop in completions may mean that building new houses on time is hard. Yet, the rise in starts shows that builders worked faster before strict new building rules on energy and electric vehicle charging points began in June 2023. ## What Does This Mean for Investors?
For investors, especially those interested in HMO properties, the housing market now shows both good points and difficulties. The rise in house prices stands for strong demand while the higher mortgage approvals mean that money to buy may be easier to get. Still, investors face a new challenge. The supply of fresh homes is not steady and the regional numbers differ.
In short, the data from the House of Commons Library give a full picture of the UK housing market. House prices rise, mortgage approvals climb, yet the number of new homes tells a mixed tale. For investors in HMO properties, knowing these shifts can help when making plans.
Further Reading
For deeper insight and the newest updates, check these links:
Stay informed about the UK housing market to make smart choices in your investments.
Disclaimer: This article has been generated by AI based on the latest news from Google News sources. While we strive for accuracy, we recommend verifying key details from official reports.
