Cautious optimism has returned to the property market, with some predicting a ‘buyer’s market’ in 2025.
Despite the scheduled end of stamp duty relief in the spring, tax changes and fluctuations in interest rates, property companies have indicated that buyers are likely to have greater negotiating power this year. The number of properties per estate agent is at a winter 10-year high.
The market has been boosted by lower mortgage rates that have fallen faster than expected – a trend that has improved the ‘affordability picture’. House prices rose in 2024, reversing early falls the year before. They are now predicted to rise by 3% in 2025, 3.5% in 2026 and 2.5% in 2027.
However, the UK may see regional disparities, with a new housing cycle favouring London in relation to elsewhere. The capital is predicted to see 4% property price growth, outpacing other areas again after a decade. This is being partially attributed to firms moving away from home or hybrid working cultures in favour of fulltime offices.
Buyers have also been aided by less competition for property than during the pandemic. Some estate agents reported their busiest Boxing Day in terms of new seller activity, citing a record number of advertised properties. Buyer demand was also up by 20% from the same period in 2023, while first-time buyers accounted for 31% of all sales.
If you are a prospective property buyer who is also investment planning in Cheshire, call local financial guidance specialist Hartey Wealth Management to discuss your options.
