Major boost for housing market in 2025

The UK property market has seen a sharp rise in new buyers and sellers since Boxing Day, pushing the average property asking price up by 1.7% to £366,189.

Rightmove’s latest report indicates this is the biggest January price increase since 2020, signaling strong momentum as we enter 2025. While seasonal price growth is expected, this year’s surge stands out as particularly significant.

Boxing Day has long been a peak time for property searches on Rightmove, and 2024 was no different. Buyer inquiries through the platform rose by 9% compared to the previous year, highlighting strong demand at the start of 2025.

Buyer Confidence Fuels Competition

So why has this happened?

These market conditions suggest buyers are feeling more assured, with many prepared to place higher bids than they did last year.

This shift may be linked to a slight dip in mortgage rates where some buyers may now look to increase their affordability.

As buyer demand increases, competition is intensifying, resulting in bidding wars and steadily climbing property prices.

Whilst this is great news for many, first time purchasers in particular may feel the pinch even more so than last year with rising prices.

Thankfully there are schemes available to help. If you are in this situation, your best bet is to speak to a qualified mortgage broker such as Nottingham based Premier Mortgage Services.

Is this trend likely to continue throughout 2025?

Possibly, yes.

Inflation fell in November 2024 and if this trend continues, mortgage rates could decline further in 2025. Lower borrowing costs would likely bring even more confidence to the market, adding to the upward pressure on prices.

But with the new government making changes to the economy, we can't be entirely sure on the future. Interest rates are never entirely predictable, meaning mortgage rates could rise as much as they could fall.

Why Now is the Right Time to Act

Despite the positive outlook, buyers should be mindful of potential changes ahead.

Most home owners and buyers secure fixed mortgage deals on their properties, allowing them to avoid sharp increases in rates, should this happen.

Wondering how much you could now afford with a mortgage? Premier Mortgage Services can help.

Secure a deal today and avoid any major changes the market may see in the months ahead.

Your home may be repossessed if you do not keep up repayments on your mortgage.