Understanding the Current Housing Market: Key Economic Indicators
Overview
The UK housing market depends on many factors. House prices, mortgage counts, and building data all signal change. This article shows recent data on house prices, mortgage approvals, and housing construction. It focuses on Houses in Multiple Occupation (HMO) to help investors watch needed clues.
House Prices on the Rise
In February 2025, UK home prices rose by 5.4% since February 2024. House prices showed a 0.5% seasonal rise from January to February 2025. Prices move differently by area. In Northern Ireland, the North West, and the North East, price gains run high. In London, the South West, and Wales, prices move more slowly. These differences give new choices. Investors may see faster regions as spots for greater gains. Slower areas may let buyers pay lower starting costs.
Mortgage Approvals Insights
Mortgage approvals point to future home sales. In March 2025, approvals increased by 4% compared to last year. They dropped by 1% from February to March 2025. In March 2025, 64,309 approvals occurred, versus 61,566 in March 2024. The small swings in approvals show buyer confidence. More approvals hint that buyers feel good about the market. This can help support the overall market view.
Housing Starts and Completions
The building sector took a hit during Covid-19. Q4 2024 saw 36,830 home completions in England. This figure is 2% higher than the previous quarter but 9% lower than Q4 2023. New housing starts numbered 30,860 this quarter. That is 7% more than the prior quarter and 52% higher than a year ago. Builders now speed up projects to meet new rules on energy use and electric vehicle charging. The switch in building work makes projects look more fit for long-term growth.
Conclusion
The UK housing market now shows mixed signals. Home prices climb. Mortgage approvals grow in small steps. Housing projects start up. Yet, regional shifts and building completions need close checks. For those who invest in or plan to buy Houses in Multiple Occupation (HMO), keeping an eye on these points helps in smart decision making. The data shows both chances and risks in the market.
