Insight: The Housing Market - February 2025

The most recent Halifax House Price Index reveals a positive and resilient start to the year in the housing market. There are encouraging signs of growth, despite wider socioeconomic confidence concerns. The housing market data shows that we’ve hit a new record high in UK property prices. So, let’s dig into the important stats and facts on a national level, while also taking a good look at things closer to home in Kent.

The Headline Stats and Facts

• Average selling price: £299,138 (up from £297,166, +0.7% on last month and representing a +1.6% quarterly rise).
• Property price increases: Annual rate of growth is strong at +3.0%.  
• Interest rates: 4.5% (with the first of 2025’s rate drops on 6^th February).
• Inflation: 2.5%, very similar to recent months.
• RICS net balance score: The RICS data shows a buoyant end to 2024. New buyer enquiries are at a net balance of +5%, meaning six consecutive months of positive growth, even though the numbers are down slightly on last month.  Agreed sales are up considerably from +1% to +7%. New instructions are firmly positive at +14%. 

Kent-Specific Stats

• Average time on market: Properties in Kent currently spend an average of 177 days on the market, up 4% on this time last year. This figure is skewed however. Detached properties are taking longer to sell whereas terraces and flats are selling more quickly than this time a year ago. Semi-detached properties have seen no change.  
• Number of properties for sale: The number of properties for sale is up notably, with a +16% rise on last year. There are currently 19,984 properties for sale in Kent.  
• Average selling price in Kent: £420,373. Kent has now seen a few months of solid price rises, bringing it back online with the national trend of rising prices.

What Does This Mean?

Amanda Bryden, Head of Mortgages at Halifax, sums up the state of play by saying, “…the market’s resilience is noteworthy.” Despite concerns over the last two years and throughout the cost of living crisis that the housing market would effectively falter, that’s not what’s happened. We are now very much regaining traction, likely partly fuelled by the background shortage in housing.

Even with global uncertainties and a dip in consumer confidence, there are definitely some good signs for the housing market. The Bank of England has kicked off the year with its first base rate cut, and chances are, more will follow. Meanwhile, household earnings are expected to keep outpacing inflation - though the gap might shrink - which should help ease some of the lingering financial strain from the cost-of-living pressures. Mortgage rates are expected to stay around 4-5%. Buyers have now adjusted their expectations, knowing that it’s unlikely they’ll come back down to the historical lows of before.

What About Kent?

For several months, Kent (along with the rest of the South East) was experiencing contraction in house prices, while the national figures still showed growth. However, in recent months, Kent has shown it too is recovering alongside the rest of the country. Notably, last month prices pushed up to and average of £420,373 representing a +0.75% increase from November.

Kent is also interesting in how different types of property are moving within the market. Those looking to sell flats and smaller properties will find they are moving more quickly. Larger detached properties are taking longer to sell. It’s also likely that the next month will see pressure from first time buyers to complete before the stamp duty deadline, again favouring flats and smaller properties.

Notably, there are considerably more properties coming onto the market at the moment, and we can expect a typical spring boost as well.

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