As we near the end of 2024, it’s natural to wonder what’s on the horizon for the housing market in 2025. At Charles Parker Bennett, our chartered surveying team has been analysing 2025 House Price Forecast trends, economic forecasts, and key market indicators to give you a clearer picture of what may lie ahead.
In our BLOG – 2025 House Price Forecast, here’s our expert take on the factors shaping the housing market and what this could mean for house prices over the next 12 months.
What Influences Our 2025 Predictions?
Our 2025 House Price Forecast is based on a combination of:
- Seasonal trends observed in previous years
- Economic shifts, including the Bank of England’s Base Rate changes
- Real-time market data, including buyer demand and sales activity
This year, significant events like the Chancellor’s Autumn Budget and November’s second Base Rate cut (now at 4.75%) have already influenced market dynamics.
How Have Buyers Responded So Far?
In the lead-up to the Autumn Budget, we saw some hesitation among home-movers, particularly first-time buyers, as they waited to see if any supportive measures were announced. Unfortunately, the lack of direct assistance for this group led to continued caution.
However, following the recent Base Rate cut, the market has shown signs of renewed activity:
- Buyer demand has increased by 23% compared to the slower market of 2023.
- Sales agreed have risen by 26%, showing stronger confidence among buyers.
What’s Happening with House Prices Right Now?
In November 2024, the average UK property price stands at £366,592, marking a 1.4% monthly decline but a 1.2% annual increase. Sellers are pricing their homes more competitively in an effort to secure sales before the seasonal slowdown leading up to Christmas.
| Month | Average Asking Price | Monthly Change | Annual Change |
| November 2024 | £366,592 | -1.4% | +1.2% |
| October 2024 | £371,958 | +0.3% | +1.0% |
What to Expect in 2025
Despite recent price adjustments, market activity remains strong, and this momentum is expected to carry over into 2025. According to Rightmove’s property expert, Tim Bannister:
“The signs are that the market momentum we’ve seen this year will continue, especially if mortgage rates drop to a level that improves affordability for more movers. That said, we anticipate some twists and turns, with mortgage rate trends playing a key role in shaping activity during the traditionally busy periods.”
While the Base Rate and mortgage rates are predicted to decline more gradually than previously expected, they are still forecasted to decrease over the course of 2025. This would provide better affordability for buyers and home-movers, likely driving demand.
Our 2025 Prediction
With more people planning moves next year and mortgage rates easing, we anticipate house prices could increase by 4% over the course of 2025.
Whether you’re considering buying, selling, or staying put, our team at Charles Parker Bennett is here to help you navigate the market with confidence. Stay tuned for updates and insights as we continue to track the housing market’s journey through 2025.
For more information or to discuss your property needs, contact us today!
