4 Key Insights For The UK Property Market In 2025

Now that a new year is well underway, it’s time to look at what the next 12 months are likely to have in store for anyone looking to buy or sell property in 2025. 

All signs seem to point towards a buyer’s market, with more favourable mortgage conditions predicted in line with interest rate decreases.

If you’re considering making moves this year where property purchases are concerned, here are some of the key trends that the Noble Estates team have identified for 2025. If, as ever, you need any further help or advice, get in touch with us today.

Mortgage rate reductions

It’s only just the end of January and already major high street lenders have reduced mortgage rates, including Halifax and HSBC, as well as various other buy-to-let lenders. 

The Bank of England base rate is currently 4.75 per cent and it’s forecast to drop to 3.75 per cent by year end. The upshot of this is that mortgages are likely to become even more affordable – which is great news for prospective buyers who can take advantage of reduced borrowing costs, spurring activity in the property market and boosting home-buying demand.

National Insurance contributions increase

In April, businesses will be hit with higher National Insurance contributions, a move that could potentially affect business profitability and job growth. 

While it’s unlikely that this will have a direct impact on mortgage rates, it’s wise to keep an eye on the situation and make preparations where possible, as it’s likely that businesses will pay lower wages than they might otherwise have done. This, ultimately, could have an impact on your ability to make mortgage repayments.

Changes to stamp duty

April is a busy month, with stamp duty taxes set to be restructured. This means that buyers in England and Northern Ireland will have to pay stamp duty on any property purchases over £125,000, down from the previous amount of £250,000. First-time buyers, meanwhile, will see a reduction in stamp duty, with the threshold falling from £425,000 to £300,000.

This means that FTBs will likely face higher upfront costs, which could affect purchasing power and put some people off in the short term from buying property.

Mixed economic outlook

While GDP growth is slowing and inflation is pushing living costs up, there’s still light at the end of the tunnel in the form of wage growth, which is on the rise. This means that buyers may find themselves with more disposable income, despite the fact that prices are climbing. 

As such, homebuyer demand could well be sustained, particularly as more manageable mortgage repayments become available in line with a fall in the base rate.

Of course, this is just a snapshot into the property and mortgage market, and other changes are sure to come our way over the next 11 months – but we’ll keep you abreast of these as time goes on. In the meantime, if you need any property help or advice, give the Noble Estates team a call today.