![\"Why](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/02\/Why-year-of-the-snake-is-set-to-be-the-year-of-opportunity.webp\")
<\/a><\/p>\nWith a series of interest rate reductions and modest increases in house prices, the second half of 2024 became a market favourable to buyers. According to experts, the positive trend is expected to continue in 2025, with the help of additional interest rate cuts and upgrades to the housing stock. This year, it is expected that there will be over a million property completions, creating an environment for a dynamic market. <\/p>\n
<\/a><\/p>\n
So, let’s look into important forecasts that support the positive outlook for 2025.<\/p>\n
Rightmove reports that the number of properties available for sale per estate agent is higher than it has been in the last ten years, suggesting that there is a greater supply of stock. During the last three months of 2024, there was a 12% increase in the number of houses available for purchase compared to the same time frame in the previous year, providing buyers with more choices and a stronger position for negotiations.<\/p>\n
In contrast to the years before 2023 when the pandemic caused prices to increase due to supply and demand imbalances, sellers are now being more careful when setting property prices. There is an expectation of a significant increase in property sales in 2025, reaching an estimated 1.15 million transactions, which will exceed the levels observed in past years.<\/p>\n
![\"Mortgage](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/02\/Mortgage-rates-expected-to-drop.webp\")
<\/a><\/p>\n
The Bank of England is expected to implement four cuts to the base rate in 2025, resulting in a drop in borrowing costs to 3.75%. Rightmove predicts that the average five-year fixed mortgage rate will decrease to about 4% from its current average of 4.8%, while the average two-year fixed mortgage rate will drop to around 4% from its current average of 5%.<\/p>\n
These forecasts depend on larger economic factors such as inflation and the growth of wages. With the narrowing gap between fixed-rate options, two-year deals may become more popular due to their flexibility. You can try out our mortgage calculator<\/a> to estimate possible savings.<\/p>\n As per the Autumn budget, from April 1 onwards, the expiration of the stamp duty relief is predicted to lead to a significant increase in transactional activity in the first quarter of the year. Rightmove has reported a 13% increase in first-time buyer activity compared to the previous year. Only 8% of properties in London<\/a> fall under the \u00a3300,000 bracket, causing buyers to engage in intense negotiations for homes in this price range to avoid paying stamp duty.<\/p>\n London’s average asking price has gone up by 12% in the past five years, a figure that is less than the national average increase of 21%. However, analysts are foreseeing a 4% rise in prices for 2025 due to the return of employees to offices and the availability of competitive mortgage offers.<\/p>\n It is also expected that there will be increased growth in regions beyond central London, especially in areas convenient for commuting. This is due to the influence of high stamp duty rates and changes to \u2018non-dom\u2019 tax status on the luxury property market. Investors and buyers will find improved affordability and value in these developing hotspots.<\/p>\n While the increase in rental prices has decreased, the demand remains high due to the rising number of workers and students in the area. Rental prices have increased by 4.5% across the country compared to last year, while London has seen a 2% rise in rents. According to Rightmove’s predictions, rental prices are expected to rise by 3% by 2025.<\/p>\n The demand for rentals in London remains high, as evidenced by the significant increase in tenant inquiries at our branches, despite rental prices being at their highest.<\/p>\n Our 21 branches in London and 14 offices in different countries position us well to assist individuals interested in buying<\/a>, selling<\/a>, or renting property<\/a> in the dynamic London property market<\/a>. No matter your location, we have the expertise and skills to help you maximise your investment opportunities. Contact us<\/a> to find out how we can help you with your property journey.<\/p>\n","protected":false},"excerpt":{"rendered":" With a series of interest rate reductions and modest increases in house prices, the second half of 2024 became a market favourable to buyers. <\/p>\n","protected":false},"author":1,"featured_media":20544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[451],"tags":[],"class_list":["post-20983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-london-property-market"],"acf":[],"yoast_head":"\nEnd of Stamp Duty relief<\/h2>\n
![\"Stamp](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2025\/02\/Stamp-Duty.webp\")
<\/a><\/p>\nLondon housing market bounces back<\/h2>\n
The growth of the rental market is still ongoing<\/h2>\n
![\"London](\"https:\/\/www.benhams.com.sg\/news\/wp-content\/uploads\/2024\/10\/Londons-rental-market-is-still-in-high-demand.webp\")
<\/p>\nPartner with us for professional advice<\/h2>\n