The UK housing market is set for a dynamic year, with key trends shaping buying, selling, and renting decisions. Understanding the factors driving market changes can help buyers and investors make informed choices.

Price growth and mortgage trends

Rightmove forecasts a 4% rise in UK property prices in 2025, reflecting steady demand. Meanwhile, mortgage rates are expected to stabilise around 4% for fixed-term deals, improving affordability for buyers. These factors suggest a positive outlook for home purchases in the coming months.

Rental market shifts

The rental market remains competitive, with rents predicted to rise by 3% due to ongoing tenant demand and limited rental stock. Investors should consider regions where demand is highest, particularly in Northern England and the Midlands, where growth is expected to outpace other areas.

Government support and first-time buyers

New government-backed mortgage schemes could provide additional support for first-time buyers struggling to step onto the property ladder. With inflation expected to stabilise, borrowing conditions may become more favourable, encouraging more people to enter the market.

Navigating the 2025 market with confidence

Whether you’re looking to buy, sell, or invest, staying ahead of market trends is essential. If you’re planning a move this year.

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