The property market in early 2025 is showing signs of resilience and cautious optimism.
The year has started with a notable increase in activity, driven by steady economic conditions and stabilising interest rates. This positive momentum is a welcome change from the uncertainties of previous years.
One of the key indicators of this renewed confidence was the record-breaking activity on Boxing Day 2024.
Rightmove, the UK's largest property portal, reported an unprecedented surge in new listings and traffic, suggesting strong consumer confidence and a robust appetite for buying and selling homes
This early activity has set a positive tone for the year, with sales agreed in January some 23% higher than the same period last year
Economic factors have played a significant role in this uptick. Falling inflation and stabilising interest rates have eased borrowing costs, making mortgages more affordable for buyers
The average mortgage rate for fixed-rate deals is now around 4.5%, providing a more stable environment for property transactions
This has encouraged both buyers and sellers to enter the market with renewed enthusiasm.
The average UK house price in December 2024 was £297,166, reflecting a 3.3% annual increase
This steady growth in house prices is expected to continue, with forecasts predicting a rise of between 2.5% and 3% for 2025
This growth is supported by the availability and cost of mortgages, which are closely linked to broader economic conditions.
For buyers, early 2025 presents several opportunities. With a variety of competitive mortgage products available, consulting a mortgage adviser can help buyers find the best deals to suit their long-term goals
Additionally, sellers may be more flexible on price, especially for properties that have been on the market for an extended period
Energy-efficient homes are also becoming increasingly attractive, offering potential savings on utilities and aligning with growing environmental awareness
The rental market is also experiencing changes, with the average monthly rent in the UK reaching £1,270, a 3.9% year-on-year increase
Landlords are preparing for the challenges and opportunities of 2025, including the rollout of the Renters' Reform Bill with its significant changes and the proposed energy efficiency improvement requirements that will require all rental properties to have a C or better rating by 2028.
Staying ahead of these regulations and planning necessary upgrades now can help landlords avoid last-minute expenses and maintain compliance. At Christopher Nevill we have been liaising with our landlord clients about how the new regulations will impact them and how we will ensure that their interests are best protected.
In summary, the property market in January 2025 is off to a strong start, with increased activity and positive economic indicators. Both buyers and sellers have opportunities to make informed decisions and navigate the market effectively. As the year progresses, understanding the balance between opportunity and challenge will be key to success in the property market.
As always the team and myself are here to help.
Darren Murphy
