Property deals per month now surpass the 100,000 mark
UK Property Market Shows Signs of Recovery
The UK property market has experienced a notable resurgence in recent months, with an increase in transactional volumes, house prices, and mortgage approvals, according to data from GetAgent.co.uk.
Following the first base rate reduction in four years at the start of August 2024, the number of transactions seen throughout the month increased by 7.6% versus July. This marked the beginning of a trend that has continued, with an average of 99,510 transactions being completed across the UK market on a monthly basis between December 2021 and August 2023. However, this figure fell to just 87,940 between September 2023 and July 2024. Since August 2024, the transactions have soared, surpassing 100,000 for the first time in almost two years.
Colby Short, co-founder and CEO of GetAgent.co.uk, has commented on the research, stating that he sees a high level of property market positivity so far this year. He attributed the increase in transactional volumes to a greater degree of confidence in the market due to the Bank of England's decision to hold interest rates.
The rise in transactional volumes has been accompanied by a rise in house prices. The average house price in England rose, with the house price index reaching 149.7 points in June 2024, showing a 2.4% increase compared to the previous year. This upward trend became more pronounced post-August 2024, with house prices rising by about 1.5% in the subsequent period as the market gained momentum.
Supporting the increase in transactions, mortgage approvals for house purchases were up 3% in May 2025 compared to the previous year, and 4% higher than the previous month. This rebound in mortgage lending after the rate cut denotes improved affordability and willingness among buyers to enter the market.
Despite the rise in transactions and prices, house price growth moderated to about 1.4% per annum by mid-2025, reflecting ongoing cost of living pressures and residual higher interest rates impacting affordability. However, demand for homes remained above the previous year's level, showing sustained buyer interest driven partly by the eased monetary conditions.
The West and East Midlands experienced some of the strongest house price growth since early 2024, while areas such as the North West of England and Scotland saw faster value increases and heightened transaction rates, indicating geographically uneven recovery within the UK housing market.
Overall, the interest rate reduction in August 2024 acted as a catalyst for improved buyer activity and mortgage lending, leading to increased property transactions and a rebound in house prices in the subsequent months. Nonetheless, the growth in prices was tempered by broader economic factors, causing a gradual, rather than sharp, market recovery.
With the outlook for the year being good for the property market, it's unlikely to see the market return to full strength until next year in terms of transaction levels. However, the signs of recovery are promising, and the market appears to be on the path to recovery following the interest rate reduction.
[1] Nationwide House Price Index: https://www.nationwide.co.uk/mortgages/news/house-price-index/ [2] Halifax House Price Index: https://www.halifax.co.uk/mortgages/mortgage-information/house-price-index/ [3] Rightmove House Price Index: https://www.rightmove.co.uk/house-prices/trend-tools/ [4] Bank of England Mortgage Approvals: https://www.bankofengland.co.uk/statistics/lending-to-individuals-and-households/net-lending-to-individuals-and-households-flow-of-credit-statistics-tables-and-charts/mortgage-approvals-for-house-purchase
1. In light of the property market's resurgence, investors might consider investing in real-estate as transactional volumes, house prices, and mortgage approvals continue to increase.2. The positive trend in the UK property market, demonstrated by an increase in transactions, house prices, and mortgage approvals, could have significant implications for the finance sector, particularly for those involved in real-estate lending and investing.
