As we approach the end of the year, the UK property market reflects a year of change, with activity levels, rental trends, and house prices offering a mix of challenges and opportunities for buyers, sellers, landlords, and renters.
December provides the perfect opportunity to assess the market’s current state and plan for the New Year. Here’s what’s happening right now and some practical advice from the Properly team.
Property Prices: Seasonal Adjustments
House prices in the UK have cooled slightly as we enter the festive period, with many regions experiencing a typical seasonal slowdown. Nationwide, average property prices have dipped by 0.8% in November compared to October, reflecting a quieter market in the run-up to Christmas.
Despite this, property remains attractive to buyers due to its affordability compared to nearby hotspots.
Tip for Sellers: If you’re considering selling, now is an excellent time to prepare your property for the New Year rush. Focus on minor improvements such as fresh paint or decluttering. These updates can significantly impact first impressions, especially for buyers searching for property for sale.
Mortgage Rates and Buying Trends
Mortgage rates have shown signs of stabilising after a turbulent start to the year. The current base rate is 4.75%, and an average two-year fixed rate is now around 5.7%, slightly down from its peak in 2024. This trend offers hope for first-time buyers and those looking to remortgage.
Tip for Buyers: With competition easing, now could be a good time to negotiate on a property. Speak to a mortgage adviser early to lock in a competitive rate. If you’re a first-time buyer, remember to check out government schemes.
Rental Market: High Demand Continues
The rental market shows no signs of slowing, with demand for rental properties remaining high. In November, they increased by 3.2% year-on-year, reaching £1,252 per month across the UK. Many renters are competing for limited properties, which has driven up prices.
Tip for Renters: Prepare your documents, including references and proof of income, to stay ahead of the competition. Consider widening your search radius to find a rental property that offers better value for money.
Landlords: Adapting to Changing Regulations
Landlords continue to face challenges with regulatory changes and rising costs.
The Renters Reform Bill, expected to pass in early 2025, includes key provisions such as abolishing Section 21 evictions and introducing a Decent Homes Standard for private rentals. This bill will significantly alter the landlord-tenant relationship, making it crucial for landlords to stay informed and adapt to these changes.
Tip for Landlords: Now is the time to review your property portfolio and ensure your properties meet upcoming standards. Consider conducting a maintenance audit over the winter months to avoid unexpected costs. Staying compliant will make your properties more attractive to tenants.
Market Trends: Opportunities Ahead
While winter is typically quieter, savvy buyers and sellers can use this period to their advantage. According to Zoopla, viewings increased 5% during January 2024 compared to December prior. This indicates that preparation now can lead to success in the New Year market.
Tip: Whether buying, selling, renting or letting, December is a great time to plan. Buyers and renters should list their requirements, while sellers and landlords can ensure their properties are market-ready for January.
Key Trends:
- There is high demand for family homes close to schools and amenities.
- Increased interest in eco-friendly properties as energy efficiency becomes a priority.
- Rental properties are being snapped up quickly, often within days of listing.
What Next?
If you’re considering buying, selling, renting or letting property, now is the time to act. At Properly, we’re here to guide you through every step of the journey. Contact us today at 0207 459 4400 or email [email protected] to discuss your plans.
We wish you a Merry Christmas and a Prosperous New Year. Thank you for your continued support, and we look forward to helping you achieve your property goals in 2025.
