According to Rightmove, property prices end the year 1.4% above December 2023, and the property portal predicts that new seller asking prices will rise by 4% next year, with forecast mortgage rate drops set to further improve affordability and stimulate market activity
Despite the festive lull, activity remains substantially stronger than the same period a year ago, with the number of sales being agreed up by 22%, and new buyer demand up by 13%.
Industry reactions:
Tom Bill, head of UK residential research at Knight Frank, commented: “The UK property market appears to be in better health than it is. There will be downwards pressure on activity and prices as the impact of higher mortgage rates since the Budget starts to feeds through. Meanwhile, a number of buyers are acting ahead of April’s stamp duty increase, which is temporarily boosting demand. A more profound sense of confidence will only return once the UK economy is heading decisively in the right direction and more sub-4% mortgages become available.”
Matt Thompson, head of sales at Chestertons, said: “We are seeing one of the busiest Decembers in years in terms of buyer demand. This is mostly driven by first-time buyers who are keen to get on the property ladder before next year’s changes to Stamp Duty but also by second-steppers including young families, wanting to upsize. Looking to 2025, despite the uplift in buyer enquiries, rapid price increases are unlikely, however, improved affordability, pent-up demand and renewed confidence in the market should provide support for steady growth in property values. As such, we predict property prices to rise by 3.4% across the UK and 3% in London in 2025.”
Steven Holden, director at Holden Copley, remarked: “The property market has shown remarkable resilience this year, with sales activity remaining strong, which gives us optimism for a promising 2025. Naturally, December brings a seasonal slowdown in new listings as many shift their focus to the festivities. However, we expect the traditional post-Christmas surge in activity to kickstart the new year, with Boxing Day marking the beginning of a busy period. Getting a valuation now or early January will help put prospective sellers in a strong position to take advantage of buyers who are actively seeking correctly priced properties. While the market remains robust, we’re mindful of challenges ahead, including the anticipated impact of stamp duty reverting to previous levels in April.”
Adam Feather, CEO at Robert Anthony Estate Agents, added: “While house prices saw a modest decline in December, broader economic conditions suggest that price declines are unsustainable. A relatively strong labour market and potentially cheaper mortgage rates ahead in the near-term are widely expect to property up property values.
