Property Market Predictions: What Awaits in 2025?
The property market kicks off 2025 with renewed momentum after a year of recovery in 2024. This blog reflects on the highlights of last year and shares key predictions for what’s to come. From improving buyer confidence to shifting price trends, let’s explore how the market is set to evolve.
2024: A Year of Steady Progress
The challenges of 2023, driven by economic uncertainty from late 2022’s mini-budget, cast a long shadow over the property market. However, 2024 marked a period of recovery. Here’s what the data tells us:
New Listings: There was a 7% increase in properties entering the market, with an average asking price of £290,000—a 4% rise from the previous year.
Rising Sales: Sales volumes surged by 15%, though the average sale price grew only by 2%, highlighting price-sensitive buyer behaviour.
Lessons from Last Year
The figures from 2024 offer valuable insights into the market’s dynamics:
- Demand Outstrips Supply: A lack of housing inventory continues to constrain the market.
- Cautious Buyers: Buyers are returning but remain selective about pricing.
- Buyer Confidence is Rebuilding: Increased sales volume points to growing optimism.
- Agents Make a Difference: Skilled estate agents helped bridge the gap between buyers and sellers
What’s Next for 2025?
The coming year holds promise but will also be shaped by broader economic uncertainties. Here are three key trends to watch:
Mortgage Rates to Reduce Further
Borrowing costs are set to drop as lenders compete for new business. This could spur buyer activity, particularly among those who were previously priced out.
Limited Base Rate Reductions
Despite lower mortgage rates, the Bank of England’s base rate is unlikely to see major cuts. Economic policies, including wage increases and tax changes, may limit significant reductions.
Stronger House Price Growth
Improved affordability, wage growth, and constrained supply are expected to drive house prices up by 6% or more, with some areas experiencing even higher growth.
Looking Forward
With demand rebounding and supply remaining tight, 2025 is expected to be an active year for the property market. Buyers and sellers alike should prepare for a competitive environment. Whether purchasing, selling, or investing, having a clear strategy and the right support will be crucial.
Stay updated throughout the year as we share more insights and developments. Here’s to a successful 2025 for the property market!
