If 2025 is the year you plan to buy, sell, or remortgage, here’s a detailed look at what property experts predict for the housing market.
A Buyer’s Market Prevails
Much like 2024, 2025 is expected to remain a buyer’s market. An increased number of homes on the market and longer selling times will give buyers an advantage when negotiating prices.
While property prices are predicted to rise by 4% over the year, sellers must remain competitive with their pricing to attract interest and secure a sale. Buyers will have greater choice and negotiating power as these conditions persist.
Mortgage Rates Set to Fall
Good news for buyers and those looking to remortgage: experts predict that both five-year and two-year fixed mortgage rates will fall to around 4% in 2025. For many, two-year fixed deals may become more appealing as their costs edge closer to those of five-year options, offering better flexibility. While lower rates are set to boost buyer confidence, we’re unlikely to return to the historically low rates seen in previous years. Keep an eye on external factors such as inflation and global events, which could influence the mortgage landscape.
Stamp Duty Changes for Buyers
From April 1st, stamp duty rates are scheduled to increase. This could result in higher costs for many buyers. Early 2025 may see a flurry of activity as buyers rush to complete purchases before the deadline. For properties near the £300,000 price mark, negotiation tactics may come into play as buyers and sellers look to offset the higher costs. First-time buyers, home-movers, and investors are already more active in the market compared to this time last year. Expect a lively start to the year as the market adjusts to these changes.
Remortgaging in 2025: What You Need to Know
If your fixed-rate mortgage deal is nearing its end, remortgaging will be a key consideration in 2025. If you secured a five-year fixed rate during 2020, when rates were at record lows, you’ll likely face higher costs when you remortgage. If your deal was set during higher-rate periods following the mini-Budget, you may find welcome relief as rates decline. Whether you’re looking to reduce your monthly payments or secure the best new deal, remortgaging could play a significant role in your financial planning for 2025.
Get Expert Property Advice
At Alexander Philips, we’re here to help you navigate the 2025 property market, whether you’re buying, selling, or renting.
