Housing market sees upward trend, but planning reform key to long-term growth

31 January 2025

Residential property transactions in December 2024 continued to rise to 96,330 increasing by 3% on November 2024 and 19% higher than December 2023.

For the same period, seasonally adjusted non-residential transactions were 3% lower than November 2024 at 9,850, and 4% higher than December 2023. 

Between April and December 2024, non-residential transactions totalled 94,080, consistent with pre-pandemic numbers and the highest level since 2019.

Commenting on the latest government figures for monthly property transactions, Stacy Eden, Partner and Head of Real Estate at RSM UK, said: "Residential property transactions for December 2024 were 96,330, which is 19% higher than the previous year and aside from October 2024, is the highest number of transactions since December 2022, showing the market is moving in the right direction.

The steep rise in October’s transactions were also driven by anticipation of tax rises in the Autumn Budget. But, with transactions between April and December 2024 sitting 12% above the same period for 2023, there’s reason for optimism, although the market has not yet returned to pre-pandemic norms.

“Transactions have been fuelled by an expectation that in 2025, growth will edge towards a normal level, and interest rates will continue to fall slowly. It is quite clear that consumers have the firepower from enhanced savings to undertake new house purchases. Government also recognises the need for liquidity in the market, and further signs of a market revival and growing confidence include a potential boost from looser mortgage regulations and expectations around higher house prices this year.” 

He added: “The government must continue to accelerate planning reform, remove administrative hurdles and encourage inward investment to ensure housebuilding targets are realised, aligning with broader economic goals and facilitating long-term growth.” 

Stacy Eden
Stacy Eden
Partner, Head of Real Estate and Construction
Stacy Eden
Stacy Eden
Partner, Head of Real Estate and Construction