As we step into 2025, many homeowners and prospective buyers are curious about the direction of the UK property market. Rightmove, one of the UK’s leading property platforms, has released its house price forecast for the year ahead, offering insights into what we can expect from the housing market. This blog will break down the key points from Rightmove’s predictions, including expected price growth, mortgage rate trends, and regional variations.
This blog is written using information published by Rightmove.
Current Market Overview
As of November 2024, the average asking price for a property in the UK was £366,592, reflecting a 1.4% decrease from the previous month but a 1.2% increase compared to the same period in 2023. According to Rightmove, this seasonal dip was driven by sellers pricing their homes more competitively to attract buyers ahead of the usual pre-Christmas slowdown. Here in Stamford, we didn’t see a slowdown. December was our busiest month! I don’t know if other agents can say the same, but we saw activity from buyers and sellers increase, and the same is happening again throughout the first week of a very wet January.
2025 Price Growth Prediction
Rightmove forecasts a 4% increase in average asking prices over the course of 2025. This optimistic projection is based on several key factors, including stabilising inflation and falling mortgage rates, which are expected to boost buyer confidence and affordability.
Factors Influencing the Forecast
- Mortgage Rates:
The Bank of England reduced the Base Rate to 4.75% in late 2024, with further cuts anticipated throughout 2025. As borrowing becomes more affordable, demand is expected to rise, contributing to price growth.
- Buyer Demand:
Following the rate cut, buyer inquiries to estate agents increased by 23% compared to the previous year. Additionally, sales agreed rose by 26%, signalling strong market activity heading into the new year. These figures suggest buyers are eager to take advantage of the improving mortgage conditions.
Regional Variations
Although Rightmove anticipates an overall national price rise of 4%, it highlights that regional disparities are likely. Areas that experienced slower growth in recent years may see a more pronounced increase, while regions that have already seen significant price surges could experience steadier, more modest growth. We’ll be publishing our monthly market insights to our registered buyers and sellers, so if you haven’t already registered with us, do it now so you don’t miss out.
What This Means for Buyers and Sellers
- For Sellers:
With more homes on the market now than at any point since 2014, sellers will need to price competitively to stand out. Rightmove notes that buyers have more options, which could lead to longer selling times if properties are overpriced.
- For Buyers:
2025 could present new opportunities for buyers, especially with mortgage rates expected to decrease further. However, as demand increases, competition may intensify, potentially driving prices higher. Acting sooner rather than later could help buyers secure properties at more favourable prices before further growth occurs.
Key Takeaways
- 2025 is expected to bring price growth of 4% across the UK housing market.
- Lower mortgage rates and increased buyer demand will be significant drivers of this growth.
- Regional variations will play a role, with some areas experiencing faster price rises than others.
- Sellers should be realistic with pricing, while buyers should prepare for increased competition.
Final Thoughts
Rightmove’s forecast paints a picture of a steadily improving property market throughout 2025, driven by favourable economic conditions and strong demand. Whether you’re planning to buy, sell, or invest, staying informed about market trends is crucial for making smart property decisions.
For more information and the full 2025 house price forecast, visit the official article on Rightmove.