Our first blog of 2025 gives us the opportunity to welcome clients old and new and to wish you all the best for the year ahead. Hopefully you’ve had a great start to the year and are ready for what 2025 will bring. Certainly, the housing market is off to a busy start with a rush of demand ahead of April’s stamp duty changes. Meanwhile, further growth is expected as inflation and interest rate cuts continue to exert a downward pressure on mortgage rates. On the lettings side, big changes are also imminent. So, will it be a case of the housing market flying high in 2025 or will it be a bumpy ride?
Increased demand
Buying demand accelerated in the autumn and the momentum has built since, delivering continued house price growth and improved confidence. According to ONS figures revealed in January, average UK house prices increased by 3.3% in the 12 months to November 2024. Halifax’s House Price Index, meanwhile, saw the same 3.3% growth for December 2024. Across this year, Rightmove predicts a 4% rise in average asking prices by the end of 2025. In London, it predicts a price resurgence with growth expected to be inline or marginally ahead of national price rises as demand picks up for the capital. London prices rose 1.8% in December compared to the month before, according to Rightmove’s latest figures.
Improved confidence
Lower inflation and interest rates are driving improved confidence and demand and should filter through to lower mortgage rates of around 4% this year, giving buyers and sellers the confidence to make their moves. The most recent inflation figure, at 2.5% for the 12 months to December 2024, was down from 2.6% in the 12 months to November and has brought fresh hope of a further interest rate cut at the Monetary Policy Committee’s first 2025 meeting in February.
Lower rates should help to sustain housing demand beyond the initial rush to complete in the first quarter before stamp duty thresholds change. Although a slight April lull may be expected just before and after the changed thresholds, this should be temporary. We expect demand to pick up again quickly and for momentum to build during the summer as additional base rate cuts take effect. We delivered a record number of sales in 2024 and hope to do the same this year.
More awards (we hope!)
We were honoured to win several industry accolades in 2024, including Independent Estate Agents of the Year, Best Real Estate Business of the Year and Best Independent Lettings Agency. Such awards make us immensely proud of how we serve our clients, and we will work hard to improve our awards haul in 2025, too.
Greater certainty for lettings
The lettings market won’t have it easy this year but clarity around changes such as Energy Performance Certificate revisions and the Renters’ Rights Bill will happen in 2025, making it easier for landlords to plan their next steps. Implementing changes ahead of due dates -- such as improving the energy efficiency of your property – will help to attract new tenants. Other changes, such as the wider measures in the Renters’ Right Bill, will be more onerous but as always we are here to help so do get in touch for guidance and advice if required.
Renewed demand for the SE16 regeneration
As we mentioned in our previous blog, the regeneration of the SE16 area will also continue as the Canada Water Masterplan progresses. Key milestones, including the first building to be handed over, will take place in 2025 and help to drive further demand and interest in the area.
Ultimately there may well be some turbulence during 2025 – the economy is not fully recovered yet and there could still be additional challenges to face. However, 2025 sees the market in good shape and that means every chance of a successful take-off.
If you’re thinking of buying, selling, letting or renting a property and would like to discover more about how a 5-star rated multi-award-winning agency can help, we’d love to hear from you;
welcome@living-london.net
0207 231 0002
Check out our VTC – Virtual Trophy Cabinet! (link to here: https://www.living-london.net/virtual-trophy-cabinet/)
020 7231 0002
welcome@living-london.net
