You can’t predict the future entirely, but many are expecting the property market to improve and build on the significant step forward it took last year. In fact, 2025 is enjoying a strong beginning on the back of more sales agreed, and one of the biggest sales pipelines from December in years. As economic stability strengthens and confidence returns to both buyers and sellers, 2025 is shaping up to be a promising year.

Stamp duty will stimulate the market

The increase in stamp duty by 2% from 0% of the portion priced between £125,001 and £250,000, starting on April 1, 2025, may not be the biggest rise. Despite the small increase, the market is already gaining momentum as homeowners strive to beat the deadline. This is adding an extra boost to the market. Read our blog to understand the upcoming changes.

A first-time buyer flurry 

With the 0% stamp duty threshold for first-time buyers dropping from £425,000 to £300,000, this sector of the market will also experience a strong first quarter before the discount ends on 31 March. The Mortgage Guarantee Scheme, which has a deadline of June 2025, will also be an incentive to move now. Having already been extended on multiple occasions, first-time buyers are stepping onto the ladder, and the ripple effect for second steppers benefits the entire market. 

Better interest rates are anticipated  

Mortgage rates are widely expected to fall as the year progresses, although homeowners are no longer holding out for the super low levels of past years. This has already added another layer of confidence to the market, and the signs are promising that this will continue as the year unfolds. 

You will have a greater choice of homes

With increased construction and market activity, buyers will enjoy a broader range of options in 2025. From contemporary city apartments to spacious family homes in suburban areas, there will be an exciting choice of homes. Renovations and upgrades to existing properties will also play a significant role, providing energy-efficient homes that are ready for modern living with real style and character. 

A better lettings market  

The Renters’ Rights Bill expected to become law this year is another dynamic to add to the mix. However, the Conservatives were unable to implement their version, claiming that the court system would require reform. Will Labour encounter the same obstacle? If not, it could benefit landlords by providing clear guidelines, reducing disputes, and ensuring reliable rental income. For tenants, it ensures fairer treatment and protection from unjust evictions, as well as greater rights and transparency. 

Buyers and sellers’ market

In 2025, we anticipate a balanced market where both buyers and sellers will have opportunities to thrive. Sellers will benefit from motivated buyers eager to secure their dream homes, while buyers will enjoy fair pricing and a competitive range of choices. Property prices have steadily grown over the years but not skyrocketed. These appealing market conditions make moving easier.

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Do you have a property plan for 2025? Contact your local Guild Member today to discuss your requirements.