Summer Update: Housing market news
In our summer update, we bring you housing market news, property sales and mortgage insights for home movers and first-time buyers.
Property sales and house prices
House price growth has remained stable. Earlier this year, the average UK house price rose by 0.4% with annual growth at 3.9%. This steady increase is likely to be the result of a spike in market activity, where people were keen to sell before the April Stamp Duty changes.
Overall, property sales increased by 14% compared to 2024.
The cost of moving house
According to Yopa’s Housing Market Affordability Review, the average cost of moving home in England is now £51,826, which is the highest in the UK. This increase of around 11% is mainly due to Stamp Duty changes.
The average cost of Stamp Duty is now £4,528, which is three times more than last year’s average. Conveyancing costs have risen by an annual average of 12.5% to £1,364, and average removal costs have increased by 1.3% to £917. However, mortgage deposits are still the largest expense for home movers at an average of £43,585. By comparison, the average moving costs for Wales and Scotland are £34,429 and £32,172.
Mortgage lending insights
According to UK Finance, at the end of last year, the UK mortgage market bounced back, driven by home movers and first-time buyers. Home mover mortgages increased by 14.7% to 288,000, while first-time buyer mortgages rose 16.4% to 334,000. In 2024, total home purchases reached 622,000, which was an increase of 15.6%, as a result of lower mortgage rates. This year, it’s estimated that 1.8 million fixed-rate mortgages are due to expire.
The stricter lending rules introduced in 2014 have made it harder to secure high loan-to-income mortgages (over 4.5 times salary). However, as everyone’s circumstances are different, it’s always worth speaking to a trusted mortgage broker to see what’s available.
First-time buyer homes
Recent research from Yopa shows the average price paid for a first home since 2014 has increased by 63%. However, in 2024, first-time buyers were in a better position to get on the property ladder than in the past decade. Despite house prices rising over the same period, income also increased, meaning homes are now the most affordable since 2015.
Yopa compared average house prices for first-time buyers with average annual earnings, calculating the number of income years needed to purchase a first home. Based on an average annual income of £31,717 and an average first-time buyer property price of £226,744, this came to 7.1 years.
Get mortgage advice
Whether you’re a first-time buyer or you’re moving house, it’s always worth getting expert mortgage advice. If you have a fixed-rate mortgage that’s due to end in the next six months, then we recommend getting a review. By comparing deals or switching your mortgage to a different provider, you could free up more cash to move house or renovate.
At Bubble Finance Hub, our experienced mortgage advisers have whole of market access to hundreds of mortgage deals. We provide holistic mortgage advice so you can find the right mortgage deal, and our advice is always tailored to your exact needs.
For mortgage advice or a review, get in touch to book an appointment.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
You may have to pay and early repayment charge to your existing lender if you remortgage.
Thank you for reading our blog, Summer Update: Housing market news.
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