Experts have claimed the number of buyers returning to the market and thousands of new homes being built could help prices soar.
West One Loans have completed new research into the subject by examining the current and historic trajectory of UK house prices based on seasons and how they performed.
Experts found last year included greater stability after data from the Bank of England displayed monthly mortgage approvals sat north of the 60,000 per month threshold since February 2024. As a result UK house prices are 3.3% higher than this time last year.
Against this backdrop, a number of industry experts, including Savills, JLL, Chestertons and Hamptons are expecting prices to increase between 3-4% this year.
Meanwhile, the estimations from West One Loans forecast house prices could climb by 3.5% to 3.9% over the course of 2025. Should this become reality, it means the average cost of a property in the UK would tip the £300,000 threshold to hit £303.913.
‘The outlook for the year ahead is that the market will continue to improve from the ground made in 2024 and we’ve already seen a strong start to the year from those looking to utilise specialist lenders in order to capitalise on the growing opportunities that are emerging due to current market momentum,’ Thomas Cantor, co-head of short-term finance at West One Loans said. ‘Many of those now utilising specialist lending are clients who have been dormant for the last couple of years and this inactivity has largely been down to the slower pace of the new-build market.’
‘We’ve seen a slowdown with respect to demand for new-build homes and this has meant that developers have seen a great deal of equity tied up in existing developments, which has prevented them from pushing forward on their next project,’ he added.
‘This tide is certainly starting to turn and, with the expectation of a more buoyancy market over the next 12 months, we’re now seeing these clients turn their focus to their next project and look to specialist lending to help get the ball rolling.
‘Our ability to allow developers to utilise specialist lending during multiple stages of the journey has been vital in the current market and we’re also seeing clients value the speed of delivery with respect to this finance, as it allows them to remain agile and capitalise on opportunities in a market where demand is increasing by the day.’
Photo by James Feaver via UnSplash
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