News update
The property market is beginning to show some signs of resilience, so we are cautiously optimist as we move ever closer to the Spring. The year has started with some increase in activity, driven by some buyers looking to complete before the end of the Stamp Duty discount holiday at the end of March. This positive momentum is a welcome change from the uncertainties experienced over the last year.
Rightmove, the UK's largest property portal has reported an unprecedented level in new listings and traffic, which suggests stronger consumer confidence and a robust appetite for buying and selling homes. This early activity has set a positive tone for the year, with sales agreed in January some 23% higher than the same period last year.
In February the Bank of England reduced the UK base rate by 1/4 %, which will help to ease borrowing costs, making mortgages more affordable for buyers. However, the reason for interest rates being reduced were not entirely positive.
The average mortgage rate for fixed-rate deals is now around 4.5%, providing a more stable environment for property transactions.. This has encouraged both buyers and sellers to enter the market with renewed enthusiasm.
The average UK house price at the end of last year was £297,166, reflecting a 3.3% annual increase. This slow but steady growth in house prices is expected to continue, with forecasts predicting a rise of between 2.5% and 3% for 2025.
Additionally, sellers are being more flexible on price, especially for properties that have been on the market for an extended period. Energy-efficient homes are also becoming increasingly attractive, offering potential savings on utilities and aligning with growing environmental awareness. With rising energy prices, the focus on energy efficiency is likely to continue to increase.
Now against the background of these positive elements there are, rapidly looming on the horizon, significant increases in business taxation that are expected to have an impact on wages growth and employment levels. UK GDP growth forecasts, for example, have been halved.
In summary, the property market in early 2025 is off to a good start, with increased activity across most price bands. Both buyers and sellers have opportunities to make informed decisions and navigate the market effectively. As the year progresses, understanding the balance between opportunity and challenge will be key to success in the property market.
As always, the team and I are here to help.
With kind regards
John
Call, email or write to us at our office in Wellswood.
We will be delighted to answer any question or provide information on our beautiful town and surrounding area.
John Couch The Estate Agent43 Ilsham Road
Wellswood
Torquay
Devon
TQ1 2JG
Telephone: 01803 296500
Email: [email protected]
Normal Opening Times
Monday - Friday: 9:00AM - 5:30PM
Saturday: 9:00AM - 12.30PM
Viewing out of hours also by appointment.
(We are closed Sundays)
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