PROPERTY UPDATE – A FORECAST FOR 2025

The property market ended 2024 on a positive note with a rise in house prices by some 0.7% in December, according to Nationwide, who also reported a wider increase of some 4.7% across the year. This growth trend is expected to continue on an upward trajectory throughout the year ahead with a similar levels of growth expected.

The north of the country surpassed the rest of the UK in terms of growth, with the North West reporting a 5.5% increase in house prices during last year. There is an anticipated increase in Stamp Duty in Aprils budget and therefore many buyers will be pushing to complete before that change comes into force.

Mortgage rates have remained consistent since Autumn, however, the start of the year has seen some reduction in rates as lenders complete for buyers. The current Bank of England base rate sits at 4.75%, the rate since November, and the next announcement will be made in February this year.

The rental sector remained strong during 2024 and that again is expected to continue through 2025. A recent RICS survey did highlight a reduced tenant demand, however, that level of demand will still outweigh available stock across the UK. Competition remains intense amongst tenants for available stock and rental yields remain high.

Investment in the property market remains a sound investment, and at Smith and Sons, demand and competition for every property remain intense with new lettings secured instantaneously. For landlords considering utilising a property management company, please contact us for an informal chat res@smithandsons.net