Positivity at last for 2025!

14th February 2025 | Caroline Vernon | Residential Property, Housing Marketing, Housing Prices

The early indicators for 2025 suggest a positive outlook for the UK housing market.

The housing market activity in January was approximately 13% higher than the same period last year. This builds on the momentum from late 2024, where mortgage approvals returned to pre-pandemic levels, according to the Bank of England. 

In addition, the Bank of England have rewarded us with a further interest rate drop to 4.5%.  the prediction is that the Bank of England is likely to proceed with rate reductions in 2025.

House Prices Maintain Stability

House prices tend to fluctuate due to various economic factors, but consistent demand and a recovering mortgage market have helped with house price growth in January.

Further interest rate cuts will improve affordability for buyers and increase demand in the housing market. Additionally, discussions around mortgage regulation relaxation could further enhance buyer confidence and accessibility.

Luxury Property Market Continues to Thrive

The high-end property market continues to show strength, with activity in the £1m+ market up by 10% compared to last year.

The prime market over £5m in London also saw a notable increase in activity towards the end of 2024, reflecting renewed confidence despite tax changes following the Budget at the end of October 2024.

Trends in the Rental Market

In the rental sector, the Renters’ Rights Bill has made further progress in Parliament. A more balanced rental market, creating more sustainable opportunities for both tenants and landlords, is emerging.

How Can We Help?

With these promising trends shaping the 2025 housing market, now is an opportune time to navigate your property journey with confidence. Our team of residential real estate specialists is here to guide you through every step, whether you are buying, selling, or investing. Get in touch to see how we can assist you in making the most of this positive market landscape.

If you have questions or concerns contact us using the details below.