UK Economic Indicators: House Prices, Mortgage Approvals, and Housing Trends for 2025 Revealed

UK Housing Market: Economic Indicators and Trends as of December 2024

The UK property market changes fast. Investors and those who plan to buy, especially in HMOs, must watch key economic signs. New reports from the UK House Price Index and the Bank of England show trends in prices, mortgage approvals, and new builds. These trends help us see the market today and in the near future.

House Price Trends

The UK House Price Index shows that average house prices rose 4.6% from December 2023 to December 2024. On a seasonally adjusted basis, prices went up by 0.3% from November to December 2024. Regions differ in these changes. Northern Ireland, Scotland, and the North East grew fast. London barely changed, and Wales with the South West had slow growth.

Investors in HMOs can use these trends to spot markets where property values climb. Northern Ireland is a case in point, as its strong rise may draw more renters.

Source: UK House Price Index – Data Downloads December 2024

Mortgage Approvals: A Leading Indicator

The Bank of England shows that mortgage approvals in January 2025 reached 66,189. This number is 18% above the approval count of the same month last year. The figure stayed stable compared to December 2024. This trend shows that even if the surge has paused, funds for buying still flow. Investors in HMOs get a sign that financing for multiple rental properties stays available.

Source: Bank of England – Mortgage Approvals – January 2025

Housing Starts and Completions

The Covid-19 pandemic changed how houses are built. In Q3 2024, England saw 36,580 house completions. That represents a fall of 13% from the last quarter and a 12% drop from Q3 2023. In contrast, house starts rose. Seasonally adjusted data recorded 29,310 new starts. That is 17% more than Q2 2024 and 38% more than Q3 2023. Builders began projects ahead of new rules on energy performance and electric vehicle charging that came in mid-2023. New completions lag behind, but rising starts give hope for more future availability. HMO investors should watch these signals, as early projects can affect the rental market.

Source: MHCLG – Housing Completions and Starts

Looking Ahead: Upcoming Data Releases

Investors and market watchers must note these dates:

The UK House Price Index updates on 26 March 2025.
The Bank of England will publish Money and Credit data on 31 March 2025.
Updates on house building from the Ministry of Housing, Communities and Local Government are set for 27 March 2025. ## Summary

The current signs in the UK housing market show a mixed yet mostly positive view for the near future. House prices have grown, particularly outside London. Mortgage approvals remain strong even as the pace holds steady. Housing completions have fallen, but the rise in housing starts gives hope for more properties soon. Investors, especially those focusing on HMOs, face both new risks and new chances. They must think carefully in the coming months.