UK Property Market Update: January 2025

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What’s Happening?

The UK property market is buzzing with activity this January, setting the stage for 2025. Economic factors, legislation, and market trends influence buyers, sellers, landlords, and renters.

January brings cautious optimism for buyers. According to Halifax, the average UK house price reached £297,166 in December 2024, marking a 3.3% annual increase. With mortgage rates stabilising at around 4.5% for fixed-rate deals, it’s a prime time to invest.

Compare Mortgage Options: Consult a mortgage adviser to find the best product for your goals.

Negotiate Strategically: Sellers may be flexible on price, especially for long-listed properties.

Consider Energy Efficiency: Homes with higher EPC ratings can save on utilities.

Current data from Zoopla indicates that the average property sale takes about 58 days. Listing your property in January can attract heightened buyer interest after the holidays.

Enhance Kerb Appeal: Simple upgrades can make a significant impact.

Price Realistically: Use local market insights for competitive pricing.

Stage Your Home: Professional staging can showcase your property’s best features.

The private rental sector is evolving with the Renters’ Reform Bill and the 2028 EPC rating deadline. Rental demand stays strong; the average monthly rent is now £1,270—a 3.9% year-on-year rise.

Stay Compliant: Review EPC ratings and plan upgrades early.

Improve Tenant Retention: Consider offering longer tenancy agreements.

Utilise Property Management Services: Simplify compliance stress.

Renters: Understanding Your Rights

The rental market remains competitive, but the Renters’ Reform Bill provides enhanced protections for tenants.

Be Prepared: Have your documents ready to secure a property quickly.

Know Your Rights: Familiarise yourself with the new legislation.

Broaden Your Search: Flexibility can increase your options.

The Bank of England expects stable interest rates through Q1 2025, likely boosting market activity.

Key Statistics:

Average UK House Price: £297,166 (December 2024)

Average Rent: £1,270/month

Average Time to Sell:58 days

January 2025 is a pivotal month for the UK property market. Buyers, sellers, landlords, and renters can successfully navigate these changes with solid strategies and expert advice.

Contact us today on 0207 459 4400 or email [email protected] for advice from your local property experts.