Property Auction House and RICS Registered Valuer
Next Auction:
13/2/2025
Property Auction House and RICS Registered Valuer
Next Auction:
13/2/2025
The housing market entered 2024 with a sense of optimism—falling inflation, lower mortgage costs, and an improving economic outlook helped restore buyer confidence. As the year progressed, market activity picked up, albeit tempered by affordability constraints keeping pricing competitive.
While early momentum was strong, much of 2024 was dominated by speculation over interest rate cuts. As summer approached, reductions were slower than anticipated, and political uncertainty ahead of the general election caused a temporary market slowdown.
Following Labour’s decisive victory, confidence briefly rebounded, particularly after a base rate reduction in July. However, concerns surrounding Rachel Reeves’ autumn budget and Prime Minister Keir Starmer’s warnings of economic challenges soon dampened enthusiasm, with many buyers adopting a wait-and-see approach.
Even after a second base rate cut, market reactions remained cautious. The much-anticipated autumn budget in October brought mixed news for the property sector. While landlords welcomed the decision to leave Capital Gains Tax on property largely unchanged, increases in Stamp Duty for buy-to-let and second-home purchases—rising to 5%—caused concern. Additionally, first-time buyers learned that their Stamp Duty relief would be reduced from April 2025. Meanwhile, Labour’s ambitious plan to build 1.5 million new homes received broad support.
As these policies took effect, market activity steadily resumed, with a surge in first-time buyer transactions ahead of the spring Stamp Duty deadline. Despite renewed speculation that increased government spending might push borrowing costs higher, the housing market remained resilient. House prices continued to rise, and by year-end, all major indices reported positive growth.
Data from Halifax, broadly in line with other sources, indicated a 3.3% rise in house prices in 2024. The North West recorded the strongest gains, up 5.3% year-on-year, with average property prices reaching £238,832. London retained the highest average house price in the UK at £547,614, reflecting a 3.3% annual increase.
Looking Ahead
Unlike last year, analysts widely predict price growth in 2025, though economic conditions will play a key role. Interest rates, employment levels, and post-budget fiscal policies will all influence the market’s trajectory.
Market Data for 2024:
2025 Housing Market Predictions
Forecasts from major analysts suggest continued house price growth:
The housing market's performance in 2025 will largely depend on economic trends, policy adjustments, and borrowing costs, all of which remain under close scrutiny following Labour's first budget.
If you are thinking of investing in the property market in 2025, why not take a look at some of the fabulous properties we have coming up in our next auction at Phillip Arnold Auctions?
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