Welcome to your monthly property update!

What will the UK 2025 property market look like?

It’s impossible to predict the future, but the 2024 property market made serious strides forward compared to the previous year. So, the market is already looking good, and 2025 promises to be even better. Let’s take a look at why and what that means for you.

Improving growth

Buyer demand and sales agreed were up by 25% towards the end of 2024 compared with the previous year.* This helps set the market up nicely for next year. As movers place their homes on the market to make an early start, the market gains more momentum. All of this means you should be able to sell more quickly and get the price you want for your property with minimal fuss. You can also enjoy exploring different properties as they appear in your inbox.

Good levels of stability

This is key to understanding the market. Far from the fear of sudden drops or high levels of house price inflation, the market has remained stable. Over the course of 2024, average house prices in the UK increased by 1%.* Property values have experienced more significant increases in many regions. The market has entered a new era, allowing you to both buy and sell at a good price. This is largely due to sensible levels of interest rates.

More competitive mortgages

The expectation is that mortgage rates will reduce further in 2025. But if you are holding out for mortgage rates to return to the super low levels of a few years ago, then you will be disappointed. Interest rates are now set at more realistic and sustainable levels. This helps curb house price inflation, creating a more stable market. It’s crucial to remember that compared to years past, interest rates today represent exceptional value.

Lots of options for you

Whatever your property plans are, the upcoming year promises to bring exciting times. More options create more opportunities. When lots of homes change hands, you tend to get a wider choice of properties. So even if you are not quite sure of your next steps, simply exploring the market will offer you much inspiration. This applies whether you are investing, developing, buying a forever home, taking first steps, or looking to buy a second home.

Slicker service

The service agents offer you has improved exponentially over the years. This year will be no exception. This is largely due to the ability to connect to almost endless lists of buyers and sellers, as well as the ever-growing range of services that are made possible. When you combine this knowledge and experience with your local market, you receive superior service. Good agents will be by your side during valuations, viewings, and throughout the entire moving process to make your move easier.

October Zoopla HPI*

Good news and more good news for your home

If you’re thinking of selling your home, you’ve probably asked yourself the age-old question: Is now a good time? The short answer is yes – but the property market is no simple matter, so let’s take a deeper look into why now could be the perfect time to get your home on the market.

Buyers are active

The first Bank of England rate cut in four years has led to a notable increase in buyer activity. Lower interest rates reduce the cost of borrowing, making mortgages more affordable for potential homeowners. As a result, the market saw a 19% surge in inquiries from potential buyers in August 2024 compared to the same period in 2023.*

This suggests that more people are considering buying homes due to lower mortgage rates. The rate cut has effectively re-energised the housing market, encouraging more people to act on their desire to buy, especially as the current economic environment favours homeownership.

Supply remains low

Despite the increased interest from buyers, the supply of homes on the market remains 3% lower than pre-pandemic levels.* A common seasonal trend in the housing market is that after the summer holiday season, many potential sellers delay their plans to sell until the new year. This seasonal slowdown in listings contributes to an already low housing supply, giving existing sellers a significant advantage. In markets where demand exceeds supply, you might be able to price your home more competitively.

Houses are selling

HMRC data shows that 90,210 residential property transactions were completed in August 2024, which is 5% higher than the year before.** This rise in completed transactions suggests a healthy market where not only are buyers actively looking for homes, but they’re also following through and closing deals. Increased buyer confidence, likely driven by the lower interest rates and a relatively stable economy, is leading to a greater volume of sales, which can further reinforce market stability.

House prices are predicted to rise steadily

House prices have shown modest growth in recent months, creating a more balanced and stable housing market. With prices rising steadily but not at an unsustainable pace, the market avoids extremes such as overheating or stagnation. This stable environment allows for reasonable negotiations between buyers and sellers, as buyers feel comfortable making sensible offers on properties that are accurately priced.

This equilibrium is beneficial to both parties: buyers aren’t overpaying, and sellers are more likely to get offers close to their asking price. As the demand from buyers continues to outpace supply, house prices are expected to rise further, albeit at a steady and manageable rate.

Rightmove*

HMRC**

Your home is in demand

We’re ending the year on a positive note, with buyer demand soaring 26% higher than the same time last year, as more homes were listed for sale and sellers searched for somewhere new to buy.*

While demand places you in a strong position to sell, it can be challenging to navigate an unbalanced market without guidance. As such, here are our top tips:

Don’t underestimate end-of-year activity

As the year draws to a close, potential sellers often decide to hit the brakes on their moving plans in favour of getting started in the new year. But by doing so, you could be missing out on a sweet spot in the market.

Home buyers have been benefitting from the lowest average mortgage rates for more than a year, which has supported double-digit growth in sales market activity.* Buyers are well-positioned to buy right now, which means you are also well-positioned to sell.

Sensitive pricing

Sensitive pricing remains key for sellers. Pricing your property in line with current market conditions will attract more buyers and keep your property from languishing on the market. With rising buyer demand, setting a competitive price will help you secure more offers and create a sense of urgency among potential buyers.

Collaborating with an experienced agent to determine the best price is essential to achieving the best result, so don’t skip out on an expert valuation from a local agent.

Timing

Timing is everything when it comes to selling. Listing your home during the end-of-year window, when others may be holding off, could give you the competitive edge you need. This is a prime opportunity to get ahead of the usual flood of listings that tend to appear after the Christmas period, which may result in more competition. Taking advantage of the current demand ensures that your property stands out and gets the attention it deserves.

Enlisting an agent

Enlisting an experienced agent is crucial in an ever-shifting market as a professional agent will guide you through the complexities of selling, helping you with everything from setting the right price to navigating negotiations.

With our market insights and strategic advice, you'll be able to sell your home quickly and for the best price. Additionally, we can also help you find your next home, making the transition even smoother.

Zoopla*

10 selling tips to make 2025 your year

If you are considering selling, this could be your year, as the UK property market has made significant progress in 2024. The last quarter of 2024 saw increasingly competitive mortgage rates, which helped to stimulate the market. The number of sales agreed upon increased by 27% compared to 2023.* This has put the market in a good place as we enter another new beginning. Here are 10 top selling tips to make 2025 your year.

First impressions

As potential buyers scroll, make your property jump out at them with those all-important first impressions. Weeding, cleaning, re-painting, grass trimming, and anything else that makes your home look in tip-top shape by increasing its kerb appeal is worth doing.

Make a start now

The Boxing Day Boom and getting an early start in January are both great opportunities to get the ball rolling. But if you feel you would like to wait to prepare your home for sale, then do so. There are always little fixes you can carry out to start the process.

Book a valuation

With house prices holding out well, the market is geared to take an upturn in 2025. This makes it a good time to book a valuation. This will also give you the opportunity to pick your agent’s brains on how to make the most of your home’s value.

Make your home enticing

Decluttering your home can be a pain, but it’s worth doing. If kitchen worktops are clear of clutter, they will look bigger. This applies pretty much everywhere, from sitting rooms to floors and bedrooms.

Be prepared

It’s easy to forget about paperwork when your mind is concentrating on preparing the rest of your property. Having certificates and other necessary documents readily available helps to avoid delays. Sorting blemished paintwork and minor fixes can make a big difference.

Clean as much as you can

Some people love it while others hate it. But homes that look clean and in good order attract buyers. If it helps, break it down into sections. Limescale, grouting between the tiles in the kitchen and bathroom, to the patio or decking all add up.

Set the scene

Dressing your home does not have to be an expensive, labour-intensive exercise. Setting the table nicely, fresh towels in the bathroom, neatly made beds, flowers, and plants after you have cleaned and decluttered will help your home look its best.

Set your asking price correctly

Using a local agent will help you set the right asking price. They may have advised you on how to prepare your home for pictures and a virtual tour. Their understanding of the local market, client list, and experience will help you extract the right value for your home.

Create a strategy

It’s always worth taking the time to discuss your sales strategy throughout the selling process. Having a plan when it’s time to negotiate can help you achieve a better selling price, and your agent’s guidance on this is highly valuable.

Talk to your agent

Regularly communicating with your agent from valuation to viewings, from negotiation to exchange of contracts, will steer you along the right path. There is a lot to remember and a lot to do, but with the right property professionals by your side, selling can be a breeze.

September Rightmove HPI*