Understanding the Current State of the Housing Market in the UK
The housing market moves with shifts in economic data. House prices, mortgage numbers, and building counts help us see changes that matter to those who own property or plan to invest in HMOs.
Recent Trends in House Prices
Data now shows that house prices are higher. The UK House Price Index reports a 5.4% rise from February 2024 to February 2025. The average house price went up 0.5% between January and February 2025 on a seasonally adjusted basis. Prices grew most in Northern Ireland, the North West, and the North East. In London, the South West, and Wales, prices climbed more slowly. These differences mark clear regional shifts in the market.
Mortgage Approvals: A Leading Indicator
Mortgage approvals mark the start of new home purchases. In March 2025, the number of approvals rose by 4% compared to March 2024. When compared to February 2025, approvals dropped by 1%. In March 2025, there were 64,309 approvals, up from 61,566 in March 2024. The lowest number of approvals came in May 2020 during lockdown when transactions fell sharply. After a rebound in 2021 and 2022, the pace of approvals has eased.
House Building Activity Amid Recovery Challenges
The Covid-19 pandemic cut house building activities sharply. In recent quarters, building activity shows slow recovery. In Q4 2024, England completed 36,830 houses. This number is 2% higher than the previous quarter but 9% lower than the same period in 2023. House building starts tell a brighter story. In Q4 2024, there were 30,860 new starts, a 7% rise from Q3 2024 and a 52% jump from Q4 2023. Builders pushed their projects to meet new energy rules set in June 2023. ## Conclusion: Key Insights for Property Investors
The data paints a mixed picture. House prices are rising, mortgage approvals shift, and building activity shows signs of recovery. Property investors, especially those interested in HMOs, need to follow these trends closely. Knowing the facts helps with solid decision making. Updates on the market will keep investors informed as conditions change.
