National estate agency Jackson-Stops expects UK mainstream house prices next year will remain on a par with 2024.
In the short term, agents across the network expect that Q1 will be particularly active as buyers look to complete before the end of current Stamp Duty incentives and act upon pent up demand that has been building throughout much of 2024 as the market awaited political stability.
When asked to describe their expectations for the property market in 2025, the three most common words Jackson-Stops agents used were “challenging” (75%), “balanced” (42%) and “competitive” (33%), suggesting that while the stability from 2024 is predicted to carry through to 2025, economic headwinds and policy changes will have an impact.
The agency admits the recent Autumn Budget and proposed changes to housing policy have the potential for a somewhat dampening impact on the market.
For example, increased stamp duty on second homes and Buy-to-Let properties from 3% to 5% could weigh on buyers’ decisions. In most cases the increase will be a cost that committed investors will absorb, but in the short term this section of the market may cool until the housing landscape becomes normalised to the additional cost.
Nick Leeming, chairman of Jackson-Stops, comments: “With the political landscape looking more settled and the shockwaves from the October budget subsiding, we have every reason to expect a more balanced market in 2025.
“This newfound equilibrium will be beneficial for both buyers and sellers, fostering an environment where transactions can proceed with greater confidence and predictability. We anticipate that this stability will encourage more people to enter the market, whether they are first-time buyers or those looking to move up the property ladder.
“In the prime market, we expect to see significant activity, benefiting from increased buyer confidence and a more stable economic outlook which will help at all stages of the chain. Moreover, with mortgage rates expected to stabilise and potentially decrease, we foresee a resurgence from committed investors seeking secure and high-return assets.
“Next year, we are hopeful that government will look to prioritise housing for older demographics and ideally incentivise downsizers – this would bring more fluidity to the market at every level. Overall, the outlook for 2025 is quietly optimistic with demand moving in the right direction following a cautious 2024.”