It’s impossible to predict the future, but the 2024 property market made serious strides forward compared to the previous year. So, the market is already looking good, and 2025 promises to be even better. Let’s take a look at why and what that means for you.

Improving growth

Buyer demand and sales agreed were up by 25% towards the end of 2024 compared with the previous year.* This helps set the market up nicely for next year. As movers place their homes on the market to make an early start, the market gains more momentum. All of this means you should be able to sell more quickly and get the price you want for your property with minimal fuss. You can also enjoy exploring different properties as they appear in your inbox.

Good levels of stability

This is key to understanding the market. Far from the fear of sudden drops or high levels of house price inflation, the market has remained stable. Over the course of 2024, average house prices in the UK increased by 1%.* Property values have experienced more significant increases in many regions. The market has entered a new era, allowing you to both buy and sell at a good price. This is largely due to sensible levels of interest rates.

More competitive mortgages

The expectation is that mortgage rates will reduce further in 2025. But if you are holding out for mortgage rates to return to the super low levels of a few years ago, then you will be disappointed. Interest rates are now set at more realistic and sustainable levels. This helps curb house price inflation, creating a more stable market. It’s crucial to remember that compared to years past, interest rates today represent exceptional value.

Lots of options for you

Whatever your property plans are, the upcoming year promises to bring exciting times. More options create more opportunities. When lots of homes change hands, you tend to get a wider choice of properties. So even if you are not quite sure of your next steps, simply exploring the market will offer you much inspiration. This applies whether you are investing, developing, buying a forever home, taking first steps, or looking to buy a second home.

Slicker service

The service agents offer you has improved exponentially over the years. This year will be no exception. This is largely due to the ability to connect to almost endless lists of buyers and sellers, as well as the ever-growing range of services that are made possible. When you combine this knowledge and experience with your local market, you receive superior service. Good agents will be by your side during valuations, viewings, and throughout the entire moving process to make your move easier.

October Zoopla HPI*

The UK property market has a lot going for it thanks to a year in which mortgage rates finally dropped and confidence replaced uncertainty. This encouraged buyer demand, and the number of sales agreed increased by 25% on the previous year.* If you're considering relocating in 2025, there are numerous compelling reasons to get started. Here are 10 reasons to buy in 2025.

Fair pricing

House prices did not skyrocket in 2024, rising by an average of 1% compared with 2023.* This means you will not pay through the nose and get the house you want at a fair price, and the earlier you start, the better.

Achieve a good selling price

You will also get a good price for your current home, which will have likely enjoyed excellent increases in value over the years. Strong levels of demand mean you will not be left waiting around for a buyer.

Good mortgage deals

Mortgage rates improved during 2024, and the good news is this is set to continue in 2025. Now that we are getting closer to a settling point and have not fallen to the previous unsustainably low levels, the market sentiment is one of ‘move now’.

Move up

If you are moving up or selling up, buying is always worth considering when the market is on the up. The conditions for moving up the ladder are ideal, creating a real window of opportunity in 2025.

Fabulous choice

Fabulous properties are appearing in every county and almost on every street, increasing your chances of finding what you want. This is boosted further with some second homeowners and landlords selling up.

No elections

Unless something rather unpredictable occurs, 2025 does not have to contend with the uncertainty that a general election can bring. This means you can focus on any tax or buying advantages the government offers.

Good timing

Making an early start has numerous benefits. Many sellers are already placing their homes on the market in December in anticipation of the Boxing Day Boom and the January rush, not forgetting the early build up to the spring market.

Start your future

With future growth levels appearing to be favourable, investing in your future now could be a good move. Investing in property can help secure your future while providing the perfect setting to enjoy so many magical moments.

Less stress more certainty

More certainty means less stress. Moving home is a big decision, but the right guidance prevents niggling worries from becoming big concerns. You will have many questions, and the answer to all of them is to use good property professionals.

It’s easier

Evolving technology that connects you to the right homes that allows virtual viewings to virtually all you will ever need during your move, makes the buying process easier. Agents in 2025 will combine tech with local expertise to give you better service.

October Zoopla HPI*

A well-managed property portfolio can provide a sturdy and reliable stream of income and could contribute significantly towards your long-term financial health. So, if you’re ready to add another property to your portfolio, now is the time to do so. As we head into a fresh new year, here are some of the key reasons for investing in property in 2025:

Growth forecasted

If you’re asking yourself: ‘Why should I invest in the UK property market?’ You only need to look at 2025’s outlook for your answer. According to Statista, the rental market is on track for growth of nearly 21% by 2028.*
Since 2021, rental growth has gained substantial momentum, with March 2024 witnessing the highest annual growth in a decade.* This trend reflects the complex dynamics between rising mortgage rates, constrained housing affordability, and a limited supply of rental properties.

Interest rates improving

Interest rates are showing signs of improvement, making the market environment more favourable for landlords and investors. As of October 3, 2024, the Bank of England's base rate stood at 5%, down from 5.25%, which was the highest level seen in 16 years.** This reduction signals a shift that could lower borrowing costs for mortgages and loans in the near term.
According to the National Association of Home Builders (NAHB), mortgage rates are expected to decline gradually over the next few years, averaging at 5.86% in 2025, and 5.49% by 2026. This downward trend could reduce financing costs for investors, enhancing the profitability of property purchases.***

Supply shortages

Despite recent improvements, the rental property market continues to face supply shortages. Although the number of available rental homes has increased by 18% compared to last year, there are still 24% fewer properties available than before the pandemic.**
This persistent shortage leaves renters with fewer options and heightened competition for available homes. For property investors, this represents a prime opportunity. If you have a solid understanding of the market and experience in property investment, now is an excellent time to expand your portfolio, not only to capitalise on strong demand but also to help address the ongoing supply challenges.

High demand

Demand for rental properties is expected to remain strong throughout 2025, driven by a combination of factors. While supply shortages are a significant contributor, the lack of affordable housing for potential buyers is also a major influence. The consistent upward trajectory in house prices will make homeownership less attainable for many, further increasing the demand for rental accommodations. As a result, property investors may expect sustained demand and potentially higher rental yields in the coming years.*

Taking the decision to sell your home is a big step. Lowering inflation has led to lower interest rates and this is encouraging many people to get on the move. If you were too busy enjoying the holidays to put your home on the market in time for the Boxing Day Boom, don’t worry. Here are 5 reasons why you should put your property up for sale after Christmas.

What is the Boxing Day Boom?

According to Rightmove, more than 10,000* homes came to the market on Boxing Day last year. In essence, the Boxing Day Boom is a bit like the Boxing Day sales, without the reduction in prices. This is appealing if you are thinking of selling, as many buyers go online to take a peek. But the good news is that this also kicks off the market nice and early.

The market is in a good spot

Numerous factors have contributed to the market steadily strengthening as the year has progressed. More competitive interest rates and a 27%* increase in the number of sales agreed, towards the close of the year places you in a good spot if you are thinking of selling. This should help you to achieve a smoother sale, helping you to discover your next home as the market goes from strength to strength.

Make an early start

Time goes by quickly, so getting an early start as one year ends and another begins can be a shrewd move. There are so many ways to get the ball rolling. You can book a valuation, list your property, and discuss a strategy with your local property experts. Many indicators suggest that next year is going to build on last year, so being decisive now can save you time in the future.

A January clear-out

After the holidays, chances are you will be having a bit of a clear-out and a tidy up. This is your chance to have a spring clean and carry out a bit of decluttering. During this process, you might feel the need to organise your paperwork and make trips to the recycling depot. This makes life much easier when it’s time to move, saving you precious hours and your potential stress levels.

Find the home you love

It can take time to find the right property for you and your loved ones. Whether you are investing in the buy-to-let market or searching for your forever home. You will feel happy when you have found it. However, occasionally, your ideal property may surprise you with an unexpected appearance. This can occur in your inbox, as you browse or during a property match. So, it’s a good idea to have a conversation with your agent about your property requirements.