Average house price set to break the £300,000 barrier

Average house price set to break the £300,000 barrier

0:03 AM, 28th February 2025, About 2 months ago

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The average price of a house in the UK will breach the £300,000 mark this year, driven by a wave of eager buyers flooding back into the market, research reveals.

Specialist lender West One Loans says these buyers are invigorating the sector, enabling builders to unlock funds from current projects and kickstart fresh developments.

Its analysis reveals that house prices could leap between 3.5% and 3.9% this year – potentially reaching £303,913 by the end of 2025, if the upper estimate holds true.

Bank of England figures indicate mortgage approvals have consistently exceeded 60,000 monthly since February 2024, propelling the average price 3.3% above November 2023 levels.

Strong start to the year

The firm’s head of co-head of short-term finance, Thomas Cantor, said: “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.

“Many of those 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.”

House price predictions

Property sector experts also forecast gains ranging from a cautious 1.1% by the Office for Budget Responsibility to a bold 4.1% from the Centre for Economics and Business Research.

Major estate agents like Savills, JLL, Chestertons and Hamptons point to a 3-4% rise.

West One says that this lively market offers an opportunity for property developers as rising demand is expected to accelerate sales of newly built homes.

However, there will be intense competition for prime sites, it adds.


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