New Year, New Home? Property Trends to Expect in 2025

Is there a more ideal tonic for the dreary, bleak midwinter than to spend some quality time scrolling homes for sale? You could make a nice home office from that £1.2 million pad, and the dogs would love people-watching from that townhouse window in Central London. Okay – while we may stray from our budgets and location when browsing homes, there’s one thing that remains true: it’s nice to dream.  

And sometimes that home move is within reach. After all, the year is young, the time is now. But what about house prices? And mortgage rates? As they’ll impact your home move, let’s explore what trends you may see in 2025, so you can plan your year out. 

Buyer demand to rise 

It’s that dreaming again. People are ready to move. Following a couple of interest rate cuts from the Bank of England, buyer demand has surged. That’s good news if you have a house that you need a shift – as it means more potential buyers who are prepared to act.  

In 2025, more buyers will be liable to pay the higher stamp duty costs in England and Northern Ireland. This will keep price inflation at bay, though. 

House prices to increase 

The average house price at the end of 2024 was £291,828, where it had risen 2.9% over the last 12 months. In winter, the average asking price tends to drop as people have less competition and just want to make a sale. This is all part of a seasonal adjustment rather than a long-term trend. It’s predicted that UK house prices will rise 2.5% throughout 2025, with a 5% bump in the volume of transactions.  

Affordability gets agile 

The housing market has now adjusted to the higher borrowing costs. In terms of mortgages, the rates aren’t expected to change much – some experts say there might be a gradual decrease – but you can expect to see lenders start to be innovative with affordability assessments. This may unlock opportunities for a broader segment of buyers, particularly first-time buyers. 

Ready to make a move? 

The property market is one that always changes – and it’s best to be prepared. And hey, we can help with that! From browsing homes for sale to selling your property and more, we are here for you every step of the way. And we keep you up to date with the latest market goings-on with our latest news stories, so you never miss an important update. We can’t wait to meet you for your 2025 moving journey.