UK property will be a buyers’ market in 2025, analysts predict

London: So, it looks like the UK property market is gearing up to be a buyer’s paradise in 2025. Aneisha Beveridge from Hamptons mentioned that as we near the end of 2024, the vibe in the housing market is shifting from worry to a bit of cautious optimism.

Experts are saying that house hunters will have more power to negotiate, which is great news for anyone looking to buy. But, there’s a bit of a catch. The stamp duty relief for first-time buyers is set to end in the spring, and we might still be dealing with high interest rates and taxes that could weigh on the market.

Beveridge pointed out that lower mortgage rates are really helping things along, dropping faster than expected. House prices are starting to climb again, reversing the drops we saw in 2023. However, while we have a general idea of where interest rates are headed, the exact path and final destination are still a bit fuzzy.

Hamptons is forecasting a 3% rise in house prices across Britain in 2025, with even more growth in the following years. They think London might start to shine again, with a predicted 4% price growth in late 2025, which would be a big deal since it hasn’t outperformed other regions since 2015.

Tim Bannister from Rightmove added that this shift could be partly due to companies pushing for a return to office work. He believes 2025 will still be a buyer’s market, giving folks more options and less competition compared to the pandemic days.

Rightmove even had its busiest Boxing Day for new listings, with a ton of properties hitting the market. Buyer interest was up 20% on December 26 compared to the previous year, as people are eager to find their new homes before 2025 rolls around.

While first-time buyers made up a record 31% of sales in 2024, there’s a chance that changes to stamp duty in April could shake things up a bit. There might be a rush to buy before those changes kick in, but overall, the impact is expected to be minimal.

In the end, affordability will likely be the main factor driving the market, especially since incomes are expected to outpace inflation for the second year in a row. This could encourage those who have been holding off on moving to finally take the plunge.