Buying soon? Here is what is changing in the market
If you’re thinking about buying a property in England in 2025, you’re not alone-and you’re certainly entering a market that’s shifting in some interesting ways. At By Design, we believe it’s vital for buyers to stay informed, so here’s a friendly guide to what’s changing in the property industry right now.
A market on the move
House prices across England are still rising, but the pace and pattern of growth are changing. The average UK house price reached £269,000 at the start of 2025, up 4.9% on the year before. However, the real story is in the regional differences: the North East saw the strongest annual growth, with prices up by a remarkable 9.1%, while London lagged behind with a modest 2.3% rise. This is a notable shift from the old days, when London and the South East consistently led the way.
Why the North is booming
For years, London was seen as the safest bet for property growth. But 2025 is showing a rebalancing. The North East and North West are now leading the pack, both in terms of price growth and the percentage of homes gaining value. This is partly thanks to more affordable prices, increased investment, and a growing number of buyers looking further afield for better value and lifestyle.
What’s happening with transactions?
There’s been a surge in property transactions, with 95,000 homes sold in January 2025-up 14.4% on last year. However, it’s taking longer on average to find a buyer, with the typical property spending 77 days on the market in January. This may be due to the seasonal slowdown over winter, but it’s also a sign that buyers have more choice and are taking their time.
Stamp duty changes: What you need to know
A big change for 2025 is the new stamp duty thresholds. First-time buyers now pay stamp duty on properties over £300,000, down from £425,000. For everyone else, the threshold has dropped to £125,000 from £250,000. This has made buying more expensive for many, and led to a rush of transactions early in the year as buyers tried to beat the deadline. Going forward, this could mean a slight cooling in demand, though experts expect the market to remain resilient.
Mortgage rates and affordability
Mortgage rates are expected to stay between 4% and 5% this year. While that’s higher than the ultra-low rates of a few years ago, the good news is that wage growth has outpaced inflation, helping to support buyer confidence and affordability. The Bank of England is also expected to cut rates further, which could ease borrowing costs as the year progresses.
Looking ahead: What’s next?
Most experts predict steady, if slower, growth in house prices for the rest of 2025-somewhere between 2% and 4%. The ongoing shortage of homes for sale, coupled with strong demand, means prices are unlikely to fall in the near term. However, the market is more balanced than it has been in years, giving buyers more negotiating power and a greater choice of properties.
Final thoughts
If you’re planning to buy soon, keep an eye on local trends-what’s happening nationally may not reflect your chosen area. With the right advice and a clear understanding of the changing landscape, you can make a confident move in 2025.
Thinking of buying? The team at By Design is here to help you navigate the market and find your perfect home. So, why not get in contact today!
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