2025 Property Prices

Traditionally, this is the time of year whereby commentators look to predict what is likely to happen next year in the housing market, but before we look to 2025, let’s start by rounding off this year.  

Reassuringly, stability has been creeping back into the residential sales market throughout the year.  The highly anticipated first Labour Budget naturally created a degree of caution, but with this delivered, there is at least clarity. We also had a further rate cut by the Bank Of England which came as a welcomed relief adding a little more confidence. However, affordability is still the key factor looking forward.  

As we approach the end of the year, which customarily brings a slow-down in activity, this year could well be slightly different given the up-coming change in Stamp Duty. Whilst it wasn’t a head-line announcement in the Budget, it was later confirmed, the current Stamp Duty relief will not be continued past 1st April 2025.  

From April, the Stamp Duty threshold for someone buying their next home will drop from £250,000 to £125,000. The impact of this will be felt more so by first-time buyers, as their relief will fall from £425,000 to £300,000. 
 

	Now	After 1st April 2025
No Stamp Duty	£250,000	£125,000 (2% on rest up to £250,000)
5% on the rest up to	£925,000
10% on the rest up to	£1,500,000
12% above £1.5m	£1,500,000+

First-Time Buyers

	Now	After 1st April 2025
No Stamp Duty	£425,000	£300,000
5% on the rest up to	£625,000	£500,000
10% on the rest up to	£1,500,000
12% on the rest up to	£1,500,000+

Rightmove recently announced that “high-value areas are already experiencing a rush to beat the Stamp Duty deadline in April”. With the average completion time taking *151 days (five months) those wising to beat that deadline will need to move quickly.  

So, what of 2025? 

With the increase in Stamp Duty, we are hopeful of a further interest rate cut early 2025. This will ease the affordability pressures and further boost confidence.  Encouragingly, the Government seem to be committed to “getting Britain building” with planning reforms intended to deliver much-needed additional housing stock. We are seeing a number of industry professionals predicting growth in asking prices for 2025.  Rightmove’s 2025 forecast is “that average new seller asking prices will rise by 4%, our highest prediction since 2021”.  Our trusted mortgage advisors, The Surrey Mortgage Company, have informed us of High Street lenders reducing rates in recent weeks, which is always a positive sign.  

Whilst the 2025 market will remain price sensitive, with a combination of economic stability and lower mortgage rates, our conclusion is that all signs would point towards a healthy residential sales market.  

If you need any advice, guidance or an updated market appraisal, contact any one of our branches; we would be happy to help.   

*Estate Agent Today
Photo by Kelly Sikkema on Unsplash