We are nearing the end and will soon be back where we started - another New Year! So, let us compare the local property market of 2024 with what we expect in 2025.
This year we had a sudden election, a change of government and the budget to contend with. Unfortunately, all three came in the latter part of the year which affected the property market. However, the number of sales agreed in 2024 is up by 26% compared with 2023!
The media hype surrounding the Renters Rights Bill scared the life out of landlords and some sold up. Ex-rental properties are usually suitably priced for those buying their first home. This meant if their landlord didn’t sell to another investor the property was ideal for the average first-time buyer and the tenants were forced to look for new rental accommodation.
Under normal circumstances, a first-time buyer or investor releases the sellers to move on to their next purchase and so it continues. This is how chains are built. Hence the lower price properties were selling like hotcakes, but the next price ranges were not having it as easy.
All of this developed a shortage of rental properties and subsequently rent prices increased – supply and demand. The good news is we are beginning to see the rental market stabilising.
Why Sell or Buy in 2025?
- High Buyer Demand: First-time buyers, who make up 36% of the market, are actively searching for homes. Likewise, more properties are coming to the market which will offer a steady and fair market for all parties. Supply and demand should be balanced.
- Improving Affordability: Lower mortgage rates are already driving renewed confidence. Mortgage rates are at their lowest levels in two years and are expected to stabilise between 4% and 4.5% in 2025.
- Optimised Timing: Selling your property before April 2025 ensures you benefit from heightened activity. Buying a property before April 2025 could save you money as shown below The Autumn Budget announced important changes to stamp duty, effective from April 2025:
The threshold will drop from £250,000 to £125,000, potentially affecting affordability. • For first-time buyers, relief will reduce from £425,000 to £300,000, limiting purchasing power.
| APRIL 2025 | |
|---|---|
| £0 - £250,000 | 0% |
| £250,001 - £925,000 | 5% |
| £925,001 – 1.5 million | 10% |
| Over 1.5 million | 12% |
| CURRENTLY | |
|---|---|
| £0 - £125,000 | 0% |
| £125,001 - £250,000 | 2% |
| £250,001 - £925,000 | 5% |
| £925,001 – 1.5 million | 10% |
| Over 1.5 million | 12% |
The next few months are crucial. If you are thinking of selling then contact us today on 01323 818000 for a free, no-obligation valuation and find out how we can help you achieve a smooth and successful sale.
If you are already on the market, not happy with your existing agent and wish to change please check your notice period. Some require 28 days or even more! You need to act NOW!