Be prepared for what is happening across the rest of 2025
The latest figures from Nationwide show that the UK housing market remains stable, with house prices rising by 3.9% annually as of February 2025. While growth has slowed slightly compared to January (4.1%), prices continue to climb, with the average UK home now valued at £270,493.
At Anthony Jones Properties, we stay in touch with the local and national markets, ensuring you have all the information you need to make a smart decision. Let’s break down the current state of the UK housing market.
Market Stability and Growing Demand
House prices have now risen for six consecutive months, showing resilience despite affordability challenges. Activity in the market picked up significantly in the second half of 2024, with housing transactions up 14% compared to the same period in 2023.
First-time buyers, in particular, are regaining confidence, with mortgage completions in 2024 only 5% below pre-pandemic levels. Given the rise in mortgage rates – currently around 4.4% for a five-year fixed deal compared to 2% in 2019 – this is an encouraging sign.
What Buyers and Sellers Need to Know
Rising House Prices: House prices are continuing to climb, meaning buyers may face higher costs, but sellers could benefit from increased home values.
Why it matters: If you’re looking to buy, you may need to act sooner rather than later before prices rise further. Sellers, on the other hand, may find strong demand and higher offers.
First-Time Buyers Are Returning: More first-time buyers are entering the market despite higher mortgage rates, showing confidence in property investment.
Why it matters: If you’re a seller, targeting first-time buyers could be a strong strategy. If you’re buying, be prepared for competition in this segment.
Cash Buyers and Landlords: Cash transactions remain strong, with activity 2% above pre-pandemic levels. Buy-to-let investors are slowly returning, though they still face challenges due to changing regulations and increased costs.
Why it matters: If you’re selling, cash buyers can provide a quicker and more reliable sale. Landlords should consider upcoming tax and regulatory changes before investing.
Stamp Duty Changes – A Short-Term Impact
With stamp duty changes set to take effect in April, we’re likely to see a surge in transactions in March as buyers rush to complete before the new tax rules come in. After this, we may experience a slowdown in the market, similar to what happened after past stamp duty adjustments.
Looking Ahead
While the housing market remains steady, inflation and interest rates could influence affordability in the months ahead. If inflation remains above the Bank of England’s target, it could lead to higher interest rates, making mortgages more expensive.
For buyers, the key takeaway is to be prepared – securing a mortgage sooner rather than later may help avoid potential future rate increases. For sellers, now could be a great time to list, with steady demand and price growth on your side.
Thinking of Buying or Selling in Wynyard?
If you’re looking for guidance on Wynyard’s property market, our team is here to help. No one can predict the future with certainty, but at Anthony Jones Properties, we’re committed to helping you make the best decisions.
For expert advice, call us today on 01740 807107.
