FEBRUARY 2025 | PROPERTY MARKET REVIEW
It seemed inevitable that many would-be buyers and sellers would accelerate their plans and seek to complete before April’s increase in Stamp Duty, and that has indeed been the case. Market activity has been brisk, especially in the first half of the month and, in the UK’s more affordable markets, it has also buoyed up capital growth rates.
February also saw another reduction in the Bank of England’s base rate of lending – a move that has prompted swap rates to fall and encouraged more lenders to cut their buy-to-let mortgage rates. Although CPI inflation rose in February – and is forecast to rise again this year – the general expectation is that the Bank rate will be reduced further. In addition to cutting investors’ costs, this should also help to alleviate affordability pressures for buyers and, consequently, create more room for longer-term price growth.
Meanwhile, the latest lettings data suggests that rents continue to deliver real-terms growth, and that gross yields in most UK regions remain healthy. Despite numerous economic shocks in recent years, Britain’s housing market has remained exceptionally resilient. Demand still exceeds supply in both the house-buying and lettings markets, and with mortgage costs falling again, conditions for investors look set to improve.
Darren Bennett
Managing Director
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