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The UK housing market has gotten off to its strongest start in three years, according to property website Zoopla, which said new sales agreed were up 12% year-on-year in January.
Zoopla's latest house price index findings come as some buyers attempt to avoid paying higher stamp duty from April this year.
The property website said that the "sales market activity that built up over 2024 has run into 2025, despite concerns over mortgage rates drifting higher and a softening in UK consumer confidence."
Zoopla's data found the number of homes for sales was also 10% higher than a year ago. This meant that 2025 was starting with the highest number of homes for sale per estate agency branch for seven years.
"More sellers mean more buyers, with demand for homes 13% higher than the same time last year," Zoopla said.
It highlighted that the annual rate of house price inflation was running at 2%, compared to -0.9% a year ago, representing the highest level of price growth since April 2023.
The average house price in the UK stands at £267,700, up £5,200 over 2024.
Zoopla said that house prices had returned to growth across all markets, with the fastest pace seen in Northern Ireland, at 7.7%.
Demand was also boosted by the confirmation in the autumn budget that temporary reliefs from stamp duty will end in April 2025 in England and Northern Ireland, according to Zoopla.
It found first-time buyer demand jumped by more than a third in November and December in the price bands where stamp duty for this group will increase the most from April 2025, between £300,000 and £625,000.
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Zoopla's monthly consumer tracker research also showed that there had been an increase in people looking to buy in 2025, with a more than a fifth of renters wanting to do so this year.
Richard Donnell, executive director at Zoopla, said: "The first few weeks of each year tend to provide a clear indication of how the rest of the year is likely to unfold. 2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.
"It is important not to read too much into the increase in stamp duty for more buyers from April as three in five first-time buyers will still pay nothing from April," he added. "The extra costs to homeowners remain manageable and unlikely to reduce sales but they will keep price rises in check."