2025 Property Market Outlook: Opportunities for Buyers and Sellers
As we approach 2025, the UK property market continues to show resilience and promise. With interest rates expected to decrease, steady price growth forecasted, and a wealth of properties available, both buyers and sellers are poised to benefit from the evolving market conditions.
Market Performance in 2024
Well the property market has exceeded expectations this year. By the end of 2024, it’s predicted that 1.1 million properties will have changed hands, a significant increase from the 996,000 transactions in 2023. House prices are expected to finish the year 3.5% higher than the previous year.
A notable trend has been the active participation of first-time buyers, who have accounted for nearly a third of all sales.
For Potential Buyers in 2025
Improved Affordability: With interest rates expected to decrease to around 3.75% within the next 12 months, mortgage costs may become more manageable. This could make property purchases more affordable for many buyers.
More Choice: The total stock of property for sale in England and Wales is at a 10-year high, offering a wider selection of properties to choose from. This increased inventory may give buyers more negotiating power and the ability to find a home that better suits their needs.
Price Growth: While prices are predicted to rise by 3% in 2025, this moderate growth could still represent a good investment opportunity. Buyers who enter the market early in the year might benefit from appreciation as the year progresses.
For Potential Sellers in 2025
Positive Price Outlook: With Hamptons predicting a 3% growth in property values for 2025, sellers could potentially see their home values increase. This may be an opportune time to capitalise on the equity built in your property.
Increased Buyer Activity: As interest rates are expected to decrease, this could stimulate more buyer activity in the market. The prediction of 1.1 million property transactions by the end of 2024 suggests a robust market continuing into 2025.
Longer Sale Process: It’s important to note that the current average time to find a buyer is 61 days, with an additional 152 days to complete the sale. Sellers should factor this timeline into their plans when considering a 2025 sale.
Considerations for Both Buyers and Sellers
Long-term Outlook: With forecasts predicting significant price growth over the next 5 years both buyers and sellers should consider their long-term plans. Buyers might benefit from getting into the market sooner, while sellers might weigh the potential for further appreciation against their immediate needs.
Market Resilience: Despite various challenges, the property market has shown remarkable resilience. This suggests that property remains a solid investment for those who buy wisely, regardless of whether you’re buying or selling.
Remember, while these predictions provide a general outlook, local market conditions can vary significantly. It’s always advisable to consult with a local property expert for personalised advice tailored to your specific circumstances and area.
