Property News: A Look Ahead at the Property Market in 2025
As 2025 begins, it’s time to reflect on the property market’s performance in 2024 and explore what lies ahead. With recovery underway after recent economic challenges, the year ahead promises fresh opportunities for buyers, sellers, and investors alike. Here’s a breakdown of last year’s results and what we expect for the market over the next 12 months.
2024: Rebuilding Momentum
The property market in 2024 showed clear signs of bouncing back after the disruptions of 2023, which were largely fueled by the economic fallout of late 2022’s mini-budget. According to data from Twenty EA, several significant trends emerged:
- Increased Listings: There was a 7% rise in the number of new properties entering the market, with the average asking price reaching just over £290,000—a 4% increase year-on-year.
- Boost in Sales: Sales volumes climbed by 15%, although the average sale price rose by just 2%, reflecting cautious optimism among buyers.
Insights from Last Year
These figures provide a clear snapshot of the property landscape in 2024:
Supply Challenges Persist: The market remains undersupplied, putting pressure on buyers.
Pricing Adjustments Needed: Overpricing often deterred potential buyers.
Buyers Are Back: Despite hesitations, buyer activity surged, showing renewed interest in the market.
Expert Guidance Matters: Working with knowledgeable agents played a crucial role in successful transactions.
By the end of 2024, property prices in the region had risen by approximately 4%, adding an average of £10,500 to property values.
2025: What Can We Expect?
The year ahead brings optimism but also some uncertainties. Here’s what the market is likely to experience:
Borrowing Costs to Improve
Lenders are expected to further reduce mortgage rates as competition heats up, creating favourable conditions for buyers. This could drive strong demand, particularly from first-time buyers.
Cautious Interest Rate Cuts
While mortgage rates may drop, the Bank of England’s base rate is unlikely to see significant changes. Any reductions will be modest, influenced by broader economic factors such as April’s minimum wage increase and changes to National Insurance contributions.
Faster Price Growth
Limited housing supply, combined with easing mortgage rates and wage growth, could push house prices up by 6% or more in some areas. The market may experience a return to healthy price appreciation similar to past recovery cycles.
A Year of Opportunity
While challenges remain, 2025 is shaping up to be a positive year for the property market. Buyers will find improved affordability through competitive lending, while sellers may benefit from increasing demand and rising property values. Partnering with experienced agents will be key to navigating this dynamic environment.
Stay informed as we track developments throughout the year. Here’s to a prosperous 2025 for all involved in the property market!
