As we step into 2025, many homeowners and potential buyers are looking ahead to see what the housing market has in store. If you’ve been thinking about making your move it’s important to stay informed about the key trends that will shape the property market over the next 12 months. We have put together key insights into the trends and predictions that will shape the housing market in the next 12 months.

1. 2025 Will Continue to Be a Buyers’ Market

If you’ve been waiting for the right moment to buy a property in County Durham or the North East, 2025 could be a great opportunity. The housing market is expected to remain a buyers' market, meaning more choice and longer times for homes to sell. This is thanks to an increase in available properties and slower-moving sales, putting buyers in a stronger negotiating position.

While house prices are predicted to rise by about 4% across the UK by the end of the year, this is still a modest growth rate, in line with long-term trends. For buyers in County Durham and surrounding areas, this means prices will rise at a slower pace compared to the pandemic-induced surges of 2020-2022, offering a relatively stable market. However, sellers will still need to price their properties competitively to secure a sale.

Expect around 1.15 million property completions in 2025, signalling a healthy market activity, though more buyers may be cautious and selective about the properties they choose.

2. Mortgage Rates Look Set to Fall – But Not to Historic Lows

For those considering purchasing a home, the mortgage landscape is set to improve in 2025. Current fixed mortgage rates are expected to drop to around 4.0% for both two-year and five-year deals, down from the higher current averages of 4.83% and 5.08%, respectively. This decrease is primarily driven by anticipated cuts to the Bank of England Base Rate throughout the year.

However, while mortgage rates will drop, they won’t return to the ultra-low levels we saw in previous years. This means buyers in County Durham will benefit from improved affordability, but the days of bargain-basement rates are behind us. Shorter-term mortgage deals, particularly two-year fixes, could become more attractive, offering buyers flexibility and competitive pricing.

3. Stamp Duty Changes Could Impact Buyer Activity in 2025

One of the most significant changes affecting homebuyers in 2025 is the rise in stamp duty rates, which will take effect from April 1st. For many buyers, this increase in costs could prompt a rush to complete purchases before the new rates kick in. In County Durham, the availability of stamp duty-free homes for first-time buyers is more prevalent than in other regions, with over 70% of properties in the North East falling within the new £300,000 threshold.

This could lead to a particularly busy first quarter of the year, as both first-time buyers and seasoned home-movers look to close deals before the higher stamp duty rates come into play. We predict increased negotiation activity, especially on properties near the £300,000 threshold, as buyers and sellers adjust to the upcoming changes.

4. Remortgaging Will Be a Hot Topic for Homeowners

As fixed-rate mortgage deals come to an end for many homeowners who locked in deals during the pandemic, remortgaging will be a focal point in 2025. If you secured a low-rate five-year mortgage in 2020, you might face higher costs when your term ends, as rates have risen since then. On the other hand, those who took out higher-rate two-year fixed mortgages in 2022-2023 may benefit from lower repayments as mortgage rates drop.

For homeowners looking to remortgage in County Durham, it’s essential to keep an eye on trends, as 2025 will be a year of mixed outcomes. To help homeowners stay on top of their options, JW Woods Estate Agents are offering advice and resources on how to navigate remortgaging decisions and what to expect from lenders in the coming months.

5. A Resurgence in London May Have Wider Market Implications

While County Durham has traditionally had its own local property market dynamics, the resurgence of the London housing market in 2025 could indirectly impact the North East region. London’s housing prices are expected to rise at a rate in line with, or slightly above, the national average, driven by factors such as the return of office-based working and renewed international interest in the capital.

For those buying or selling in County Durham, this may influence broader market trends, including increased demand from buyers looking to relocate from London or other cities seeking more affordable properties. The relative affordability of County Durham homes compared to London may continue to make the region an attractive proposition for those looking to escape the capital’s higher living costs.

Conclusion: How to Make the Most of 2025’s Housing Market 

As 2025 unfolds, the housing market will present opportunities for both buyers and sellers. Whether you’re looking to purchase your first home, move to a larger property, or downsize, understanding the market trends will help you make informed decisions.

At JW Woods Estate Agents, we’re here to provide expert advice on navigating these changes and making the most of the opportunities ahead. Whether you’re keen to explore new listings, understand mortgage trends, or take advantage of stamp duty changes, our team is ready to guide you every step of the way.

If you're thinking of making your move in 2025, contact us today to get started on your journey.

Adapted from Rightmove