by Sam Akbay
Buyer’s Market, Increased Negotiating Power, and Opportunities Ahead
The property market in 2025 is shaping up to be a dynamic landscape, with industry experts predicting a shift towards a “buyer’s market.” This change is expected to bring greater negotiating power to buyers and a potential increase in house sales as confidence in the market grows.
A Year for Buyers
With more properties available per estate agent than at any time in the last decade, buyers are likely to find themselves in a favorable position. Tim Bannister from Rightmove highlights the reduced competition among buyers compared to the pandemic years, giving house hunters some breathing room to make informed decisions.
However, Bannister advises against waiting too long if the right property comes along. Well-priced homes in desirable areas continue to attract swift offers, particularly as falling mortgage rates—forecasted to dip to around 4% by year-end—improve affordability and buyer sentiment.
First-Time Buyers and Stamp Duty
First-time buyers are expected to act quickly in early 2025, rushing to secure properties before the current stamp duty discount ends on April 1. The temporary “nil rate” band of £425,000 will revert to £300,000, potentially altering affordability for many.
Lucian Cook from Savills predicts a surge in first-time buyer activity leading up to this deadline, while also anticipating the return of more mortgaged owner-occupiers to the market as interest rates gradually decrease.
The London Market and Beyond
London’s property market may experience a resurgence in 2025, partly driven by companies reinstating permanent office working arrangements. In contrast, the “race for space” seen during the pandemic, which fueled demand for rural and coastal homes, may continue to unwind, particularly in the South West and East of England.
While the prime London market might face challenges from additional taxes and fees, regional prime markets could see steady growth as families seek affordability, commutability, and access to quality schools.
Rental Market Trends
The rental market remains under pressure, with high demand and limited supply driving continued rental growth. Zoopla predicts rents for new lets will rise by 4% in 2025, with affordability playing a significant role. More affordable regions like the North are expected to see stronger rental growth, while areas like London may experience slower increases due to stretched tenant finances.
Challenges and Opportunities
While the outlook for 2025 is optimistic, some challenges remain. The end of stamp duty concessions, ongoing geopolitical tensions, and fluctuating inflation could introduce uncertainty. For homeowners remortgaging in 2025, the picture is mixed. Some will face higher costs after exiting pandemic-era fixed-rate deals, while others may benefit from lower rates post-mini-budget.
On a positive note, UK Finance anticipates improved mortgage affordability and a gradual reduction in mortgage arrears as interest rates decline. Lending to homebuyers is forecast to grow by 10% in 2025, signaling a steady recovery for the housing market.
Looking Ahead
As we move into 2025, the market presents a unique window of opportunity for buyers, investors, and sellers alike. Whether you’re looking to buy your first home, expand your property portfolio, or relocate, our team at Sam Akbay Property Agency is here to guide you every step of the way.
Stay tuned for more insights and updates on the property market. If you’re ready to make your next move, get in touch with us today to explore your options in this exciting new year for real estate.
