JANUARY 2025 | PROPERTY MARKET REVIEW
The expectation of a higher rate of Stamp Duty Land Tax has been an important factor this month. It has prompted a surge of activity as would-be buyers and sellers have sought to complete ahead of the April deadline. Accordingly, the market has seen a sharp rise in the number of homes offered for sale and a related flurry of sales enquiries. RightMove and others have remarked upon the fast pace of the current market, although it can logically be expected to slow as we move into and beyond April.
Nevertheless, the market appears conducive to price growth. Most forecasts suggest that investors will see modest capital appreciation this year, typically in the range of +2% to 4% by year-end. However, there are uncertainties to be contended with – not least the presidency of Donald Trump and how his proposed trade tariffs might impact international trade and the global economy.
In most respects, however, conditions should remain good across the UK. Demand continues to exceed supply in both the buyer and rental markets, and the cost of borrowing is expected to fall slowly over the coming year. Moreover, average earnings are still rising faster than inflation, so the market should gradually find itself less hampered by the affordability constraints that limited price-growth last year.
Darren Bennett
Managing Director
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