What Can We Expect From The Housing Market In 2025?
If you’re considering buying a home in 2025, you’re likely to be pondering what lies ahead for the housing market in the next 12 months. Without the benefit of a time machine or a crystal ball, nothing can be predicted with absolute certainty, but recent developments, reports from expert analysts and emerging trends present several encouraging signs for prospective homebuyers.
Positive Economic Indicators
The broader economic landscape supports a favourable housing market outlook. With incomes expected to outpace inflation for the second consecutive year, buyer demand is likely to remain robust. This economic stability provides a solid foundation for those considering property investments in 2025.
Increased Activity, Particularly Early On
With Stamp Duty costs due to increase on 1 April, many homebuyers are racing to complete a move before the changes come into effect. The last few months saw a spike in activity from first-time buyers who benefit most from the current Stamp Duty rates. With time running out, the peak of activity is likely to end in the next few weeks. Many buyers can accelerate the process by purchasing from a housebuilder, thereby eliminating upward chains which often cause delays. First-time buyers are currently taking advantage of this at Erris Homes’ Calder Mews development.
In the longer-term, the housing market is poised for heightened activity, with Rightmove anticipating an estimated 1.15 million property completions in 2025. This uptick reflects improving market conditions and growing buyer confidence.
House Price Growth – Particularly In The North
Most experts are forecasting a rise in UK house prices, with an overall increase of approximately 2.5% to 4% over the course of 2025. Some regions are likely to grow at a quicker rate than others, with prices in Scotland and northern England expected to rise the fastest out of all UK regions in 2025, according to real estate firm Savills. If you aspire to own a home in one of these high-growth regions, purchasing early in 2025 is likely to be a wise investment.
Favourable Mortgage Rates
Mortgage lending rates are set to drop in 2025. Some experts think the Bank of England will cut the base interest rate three or four times in 2025 – less than previously expected, meaning mortgage rates are likely to fall more slowly than many were predicting a few months ago. We won’t see rates return to historic lows in 2025, or anytime in the foreseeable future, but rates are more favourable now than at any time since autumn 2022.
A Promising Overall Picture
With analysts forecasting a year of modest growth, improved affordability, and increased market activity, 2025 looks like an opportune time to get active in the property market, especially in the first half of the year.
If you’re considering purchasing a property, you have compelling reasons to be optimistic about entering the market this year.
To find out more and start planning your 2025 move, contact Erris Homes on 0113 531 0000 or caldermews@errishomes.com
To find out the latest availability at Calder Mews and arrange an appointment to view, contact Edkins & Holmes on 0142 255 3510