Jacksons - Magazine - Page 3
from the first day of ownership, granting them
greater control over ground rent and service
charges. This reform forms part of wider efforts to
strengthen property rights and enhance market
stability.
continue decreasing, leading to a further
recovery in sales volumes and house prices.
However, despite planning reforms, the supply of
new housing is anticipated to remain subdued
and below target, which could further advantage
sellers due to reduced competition.
ROBUST MARKET ACTIVITY IN LONDON
London’s property market has seen a revival, with
house sales reaching their highest levels since the
2016 Brexit vote. This growth is largely due to a
recovery from almost a decade of challenges, with
revenues and profits in 2024 exceeding market
expectations. The number of homes under offer is
now at its highest since before Brexit, driven by a
surge in first-time buyer activity ahead of stamp
duty changes scheduled for 31st March. This trend
reflects strong demand for properties, providing
significant advantages for sellers in the capital.
STABLE HOUSE PRICE GROWTH
Nationwide reports that UK house price growth
eased to a modest 0.1% in January, with annual
growth recorded at 4.1%. The average property
price now stands at £268,213. Although affordability
remains a challenge, the market continues to
demonstrate resilience, with mortgage
repayments for an average first-time buyer now
accounting for 36% of take-home pay—above the
long-term average of 30%. However, improving
mortgage rates and rising wages are encouraging
more buyers to return to the market, ensuring
sellers have a consistent pool of prospective
purchasers.
Favourable Rental Market Conditions
The rental market remains in high demand, largely
due to rising interest rates making mortgages less
affordable. Increasing numbers of young
professionals and families are seeking rental
accommodation, resulting in a highly competitive
market. This trend is advantageous for landlords, as
greater demand can lead to higher rental yields
and lower vacancy rates.
POSITIVE OUTLOOK FOR 2025
Looking ahead, the UK property market is set for
growth and resilience in 2025. Declining interest
rates have enhanced the outlook for the residential
sales market, with mortgage rates expected to
March also offers a conducive environment for
buyers too, characterised by improved
affordability, stable prices, supportive
government policies, favourable market
conditions, and regional investment
opportunities.
Improved Affordability: The Bank of England has
reduced interest rates, resulting in more
favourable mortgage rates. This development
improves affordability, especially for first-time
buyers and those looking to upgrade their
homes.
Stable House Prices: House price growth has
slowed, with a modest 0.1% increase in January.
This stabilisation gives buyers more confidence
and reduces the urgency to make rushed
purchasing decisions.
Government Initiatives: The government is
actively working on measures to stimulate
economic growth, including plans to streamline
planning processes and reduce regulatory
barriers. These initiatives are designed to
increase the housing supply and make
homeownership more accessible.
Favourable Market Conditions: The current
market dynamics favour buyers, with a greater
number of properties available and homes
taking longer to sell. This environment offers
buyers more choice and enhanced negotiating
power.
Regional Opportunities: Certain regions,
especially in the North of England, are seeing
strong growth in rental yields and property
values. Investing in these areas can provide
promising returns and more affordable entry
points for buyers.
LIFESTYLE MAGAZINE
3
