As 2024 draws to a close, we're gearing up for what promises to be an intriguing year in the property market. At JW Woods, our team is digging into real-time data, seasonal patterns, and economic indicators to bring you our 2025 house price forecast. Whether you’re a potential buyer, seller, or just a market watcher, here’s what you need to know about the year ahead.

What’s Been Happening in the Market?

November has been an eventful month. Following the second Bank of England Base Rate cut on 7 November (bringing interest rates to 4.75%), we’ve noticed a notable uptick in buyer activity. This is especially significant considering the cautious vibe earlier in the autumn, when many home-movers hit the pause button in the lead-up to the Chancellor’s Autumn Budget. Unfortunately, the Budget didn’t offer much in the way of incentives for movers or first-time buyers, keeping some potential buyers on the sidelines.

But the Base Rate cut has been a game-changer. Buyer demand surged, with inquiries about properties climbing 23% compared to the quieter 2023 market. Sales agreed also jumped by 26%. Momentum is picking up, and it’s setting a solid foundation for the year ahead.

What About House Prices?

In November, the average property price dipped slightly to £366,592, a 1.4% decline compared to October. Sellers are clearly pricing their homes more competitively to secure sales before the usual holiday slow-down.

Monthly Price Changes:

While November’s dip might seem discouraging, the bigger picture is more optimistic. This year’s market has been considerably more active than last year’s, and with lower mortgage rates on the horizon, we expect house prices to rise by up to 4% over the course of 2025.

What to Expect in 2025

We predict a stronger housing market next year, buoyed by:

• Lower mortgage rates: Affordability is key, and gradual reductions in mortgage rates throughout 2025 could unlock opportunities for buyers who’ve been holding back.
• Increased demand: We’re already seeing more people making their move, and this trend looks set to continue.
• Steady price growth: A 4% rise in average property prices is on the cards, assuming affordability improves as anticipated.

However, we also caution that there might be some twists and turns. The pace at which mortgage rates fall will play a significant role in shaping market activity during traditionally busy times, like spring and early summer.

Tools to Help You Plan

Thinking of moving in 2025? A good first step is understanding your financial position. Tools like mortgage calculators can give you a clear idea of your borrowing potential based on your deposit size and income. Better yet, apply for a Mortgage in Principle to get a tailored estimate and move one step closer to your next home.

Our Take

While 2024 might end on a slightly quieter note, the groundwork is being laid for a promising 2025. The combination of increased market activity, competitive pricing, and gradually improving mortgage rates is setting the stage for a year of growth. Whether you’re buying, selling, or simply curious about the market, the team at JW Woods is here to guide you every step of the way.

Let’s make 2025 the year you find your perfect home!

Source: Rightmove