The housing market in England is set for an eventful 2025, with anticipated changes in property prices, sales volumes, and the influence of key economic factors and government policies. Here’s what to expect: 

1. Steady price growth in a buyer’s market 

Average asking prices are forecasted to rise by 4% in 2025, the largest annual increase since 2021.* Despite this growth, the market is expected to favour buyers due to the high number of properties available for sale. Increased competition among sellers will help balance price growth, offering buyers more choice and negotiating power. 

2. Sales volumes expected to rise 

Rightmove predicts around 1.15 million property transactions in 2025, reflecting increased activity compared to previous years.* Buyers and sellers alike are expected to benefit from this dynamic environment, with strong demand from first-time buyers, home-movers, and investors driving the market. 

3. London’s price growth resurgence 

After years of lagging behind national averages, London’s housing market is poised for a comeback. With major companies calling workers back to the office and international interest reviving, London’s price growth is expected to match, if not exceed, national averages. This marks a turning point for the capital’s market, making it a key area to watch in 2025. 

4. Lower mortgage rates boosting affordability 

Average mortgage rates are predicted to fall to around 4.0% for both two-year and five-year fixed deals, driven by anticipated Bank of England Base Rate cuts.* This decline will improve affordability, encouraging more buyers to enter the market. Combined with wage growth outpacing inflation, buyers are likely to feel greater financial confidence. 

5. Impact of stamp duty changes 

The rise in stamp duty from April 2025 is expected to create a surge in early-year activity as buyers rush to complete transactions before the deadline. While this urgency may wane later in the year, it offers sellers a prime opportunity to secure competitive offers in the first quarter. 

The combination of steady price growth, increased sales activity, and improving affordability makes 2025 a pivotal year for England’s housing market. Whether you’re buying, selling, or investing, understanding these trends will help you navigate the market confidently. 

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Rightmove*