As we edge into 2025, those considering entering the housing market may find themselves at a crossroads, wondering what the year ahead holds. Here are the top five insights that could shape your decision-making process and ensure you’re well-prepared for what lies ahead in the property landscape.
- Continued Buyer’s Market
2025 is expected to remain a buyer’s market, much like the previous year. With an increase in property availability and longer times on the market, buyers will have the advantage in negotiations. Despite this buyer-friendly environment, house prices are anticipated to rise by approximately 4% by year’s end, reflecting the highest growth projection since 2021, as reported by Rightmove.
- Decreasing Mortgage Rates
Mortgage rates are forecasted to decline, with five-year and two-year fixed rates potentially dropping to around 4.0%. This is a decrease from the current averages of 4.83% for five-year and 5.08% for two-year fixed rates. This anticipated drop is expected due to several predicted cuts to the Bank of England Base Rate throughout the year, although external factors like geopolitical events could influence these trends.
- Impact of Stamp Duty Changes
The housing market might experience a flurry of activity in early 2025 as buyers rush to complete purchases before the Stamp Duty rates increase on April 1. This adjustment could affect buyer activity and market dynamics, especially for properties priced around the new £300,000 threshold for first-time buyers.
- Focus on Remortgaging
For many homeowners, 2025 will be a crucial year for remortgaging, especially for those whose fixed-rate deals are coming to an end. The decisions made will be influenced by the shifts in mortgage rates, with potential savings for those moving from high-rate two-year fixes to the newly adjusted rates.
- London’s Market Resurgence
After lagging in price growth compared to the national average, London’s housing market is poised for a resurgence. Factors such as the return to office-based work and increased international buyer interest are expected to drive demand and potentially push price growth to meet or exceed national levels.
Enhance Your Move with Doree Bonner International
As you plan your move in this current market, consider partnering with Doree Bonner International for expert assistance. Our comprehensive packing, moving, and storage services are designed to make your relocation as smooth and stress-free as possible. From decluttering and secure packing solutions to efficient moving services, we are equipped to handle all aspects of your move.
Find out more about how Doree Bonner International can support your 2025 moving plans. Let us help you make a seamless transition into your new home with our professional packing, moving and storage services or optimise your property for the market.
Navigating the housing market can be complex, but with the right information and support, you can make informed decisions that align with your real estate goals for 2025 and beyond. Get your free online quote or contact us 24/7.
