Let’s take a closer look at what’s happening in the property market as we reach the end of January 2025. Is now a good time to buy or sell a home?
A Positive End to 2024
The property market closed 2024 on a strong note, supported by two Bank of England interest rate cuts in August and November. These reductions helped stimulate demand, leading to stable prices and increased activity.
According to the Halifax House Price Index, UK house prices rose by 3.3% in 2024, despite a slight 0.2% dip in December.
Meanwhile, the Boxing Day Bounce was significant. Rightmove reported that Boxing Day 2024 saw record-breaking activity, with more new property listings and higher site traffic than ever before.
These trends suggest that many people are motivated to move in 2025, creating opportunities for both buyers and sellers.
Where is the Property Market Heading?
House Prices
Most industry forecasts predict house prices will see modest growth in 2025.
- Knight Frank anticipates a 2.5% increase in average property prices.
- Savills suggests prices could rise by 4%, depending on future interest rate reductions.
Interest Rates & Mortgage Affordability
Although interest rates haven’t fallen as quickly as some expected, forecasts indicate that they will trend downwards throughout 2025.
- Santander predicts the Bank of England base rate will drop from 4.75% to 3.75% by the end of the year.
- Barclays is forecasting an even steeper decline to 3.5% over the same period.
Lower interest rates should lead to cheaper mortgages, making it more affordable for buyers to enter the housing market. Keep an eye on the next Bank of England rate announcement on 6 February, which could provide further insight into where rates are heading.
A Summary of the Market So Far in 2025
The property market is not expected to experience the rapid growth seen in 2020 and 2021. Instead, prices are likely to remain stable, offering a balanced market for buyers and sellers.
- For buyers: There is currently a good selection of properties available at attractive prices, with more expected to come onto the market.
- For sellers: Buyer demand remains strong, but correct pricing and professional marketing will be essential to achieving a successful sale.
Is Now a Good Time to Move?
While national forecasts provide a broad outlook, house prices and market trends can vary significantly at a local level. If you’re considering selling, it’s best to consult a local property expert who understands the specific dynamics in your area.
As your trusted local estate agents, we’d be happy to provide a free market appraisal and valuation to help you make an informed decision. Contact us today!
Do you know someone who might find this article helpful? Feel free to share it with a friend or relative who’s thinking about buying or selling in 2025.
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