Everything you need to know if you’re considering a move this year
Welcome to my first letter of 2025. If you are thinking of selling your home at any point this year, you may be wondering how the current economy and housing market could affect your decision to move.
Having sold homes in the Barking and Dagenham property market for many years, I would like to offer you some personal insights and advice in this letter, which I hope will help you to make more informed decisions about your property.
Firstly, how did the UK housing market perform in 2024?
A full year has passed since the national property market was hit by record-high inflation, interest rates and a huge cost of living crisis. The 2023 market was a particularly strained one, with apprehension from both home sellers and buyers resulting in slower activity and fewer homes available to purchase.
Fortunately, base rate cuts saw mortgage lenders begin to bring interest rates down, giving more buyers confidence to start looking for new homes again, and house prices began to rise to meet this demand. More homeowners subsequently brought their properties to the market, and we saw a big increase in activity as 2024 progressed. In December, Rightmove - which markets 95% of all properties for sale nationally - reported a 22% increase in homes being listed for sale compared to December 2023.
Will mortgages become more affordable this year?
Whilst we can’t be certain what will happen with mortgage rates throughout the year, many brokers around the country have predicted a decline in rates, which is good news for anyone looking to finance their next property purchase.
In December, UK Finance - which represents over 300 financial sector firms nationally - predicted “continued steady growth in both house purchase and remortgage lending as affordability improves further” this year. It forecasted a 10% increase in mortgage lending compared to 2024, which is good news for anyone hoping to sell their home: the majority of buyers use mortgage finance.
Will house prices go up or down?
As interest rates look set to reduce and as household affordability improves, property asking prices are predicted to increase in line with growing demand.
Property site Rightmove predicted a 4% rise in asking prices throughout 2024, and experts at Nationwide, the UK’s second largest mortgage provider, predicted house prices will rise by between 2% and 4% this year. The lender’s chief economist said this was largely due to “upcoming changes to stamp duty [which] are likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax.” In its Autumn 2024 Budget, the government said it hoped that the upcoming Stamp Duty Tax changes would “support an additional 130,000 first-time-buyer and primary residence property transactions in the next 5 years”.
What’s happening with house prices in Barking and Dagenham?
According to data from HM Land Registry*, sold prices across the area in September 2024 increased by 0.7% year-on-year, but were 0.2% lower than the previous month. The average price paid for a detached property in September was £604,791.
In December, Rightmove reported asking prices in the borough had increased by 0.2% from November, with a year-on-year increase of 3.1%.
As of December, properties in London were taking an average of 67 days to sell.
It’s no secret that selling your home can be stressful. But with our property prices continuing to rise and buyer numbers increasing, you’re in a great position if selling is on your radar in 2025.
Hopefully, a decline in mortgage interest rates will also help to make property purchases more accessible. Better mortgage rates will bring more buyers back to the market, higher demand will push property prices up, and you’ll be able to achieve a price for your home that you’re happy with - without being stuck on the market for too long.
I hope you have found this update useful. Please call me at the number below at any time if you have any questions or would like to discuss anything further.
Yours faithfully,
Tom Ashwood
PS The key to achieving a timely sale, for the best price possible, is to work with an experienced estate agent who will regard your personal circumstances. Please give me a call on 07856 564416 to discuss how we can work together to get you moving.
*HM Land Registry data available up to September 2024, all information correct at time of publication.
Writer: Rebecca Beardmore