ONS house price index – Thoughts from the Industry
On Sales:
Jean Jameson, Chief Sales Officer at Foxtons:
“February built on January’s strong momentum, with sales outperforming last year and market confidence holding steady. First-time buyer demand remained resilient, despite the fact that anyone buying now is unlikely to complete in time to benefit from the stamp duty relief—suggesting the incentive may not be the primary driver. There were no major headwinds this month, and we continue to see steady interest across all buyer groups and property types. Looking ahead, interest rates remain the key factor to watch. If they continue to ease, the market is well placed to support wider economic growth throughout 2025.”
Nathan Emerson, CEO of Propertymark:
“Today’s figures suggest that housing continues to play a vital role in the UK economy and that an uplift in housing activity can help generate further economic growth. With the Planning and Infrastructure Bill heading through Parliament, this should pave the way for 1.5 million new homes across England and Wales before the next general election and should contribute positively towards stabilising supply and demand levels and help keep pace with predicted population growth across the forth coming years.
“Although the last Bank of England Money and Credit Report suggested that net mortgage approvals for house purchases decreased slightly at the start of this year, there is currently a strong appetite to borrow in order to purchase a potential new home. The same report suggested overall net borrowing rose by £0.9 billion. Today’s news should deliver a sense of confidence to those considering taking ether their first or next step on the housing ladder.”
Tim Parkes, CEO of RAW Capital Partners:
“House prices continue to report positive annual growth, and this very much aligns with the market sentiment we are witnessing on the ground. Momentum built towards the end of last year, and activity levels have surged in early 2025. Despite next week’s changes to Stamp Duty thresholds, there’s still optimism that the market will continue perform well throughout the spring and summer months.
“Largely, this confidence stems from the Bank of England’s rate cutting cycle. While rates were held at last week’s meeting, markets anticipate at least two cuts before the year’s end, potentially bringing the base rate down to 4.0%. The economic data the Chancellor will be revealing later today from the Office for Budget Responsibility (OBR) – announced alongside the Spring Statement – will provide some important clues as to whether the Bank has the scope to proceed with these cuts.
“Regardless of what decision comes next, the sector is actively finding ways to facilitate investment, and today’s positive house price data should provide further encouragement. Lenders and brokers must now work together to ensure investors can access the finance they need to sustain this momentum into Q2 and beyond.”
On Lettings:
Gareth Atkins, Managing Director of Lettings:
“The rental market in 2025 is showing a more measured pace compared to the intense competition of previous years. Tenants are no longer making snap decisions to beat out the competition and are instead taking more time to explore their options and compare neighbourhoods before committing. At the same time, landlords are adjusting to evolving renter expectations by maintaining well-presented properties and setting competitive pricing. With the upcoming Renters’ Rights legislation, the market is expected to further emphasise quality and value.”
Nathan Emerson, CEO of Propertymark:
“With there being a decreased focus on the supply of new rental properties in the UK Government’s Renters’ Rights Bill, it sadly comes as little surprise that rents continue to increase. However, there are reasons to believe that they have not increased at the rate they have done in previous years. For example, recent data has found that annual rent inflation for new lets is running at its lowest level for 3.5 years.
“Propertymark recognises that the UK Government’s aim is to safeguard renters and give them greater security. However, an unintended consequence of continued legislation placed on landlords is a real concern echoed across the industry as overly prohibitive regulations will likely contribute to a reduced supply of rental homes, an increase in rent prices, and make it harder for people to find affordable housing.”
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