As we step into 2025, many buyers and sellers are asking the same question: What’s next for the property market? Will house prices rise or fall? How will the upcoming Stamp Duty changes impact the market? And is now a good time to buy or sell? Let’s take a look at some key predictions for the year ahead and what you can expect if you’re planning a move in 2025.
Predictions for Spring 2025
Activity in the property market is expected to remain strong until March 2025. The key driver? Stamp Duty changes coming in April, which we’ll cover in more detail shortly.
In the first quarter of the year, we’re likely to see a surge in buyers bringing their purchases forward to beat the higher Stamp Duty rates. This could create a peak in sales during Q1, similar to what we saw with previous Stamp Duty deadlines.
Looking beyond March, the market will continue to be influenced by interest rates. While higher rates have cooled buyer demand over the past year, we’re now seeing stabilisation and even some lenders cutting mortgage rates to attract buyers more aggressively. This should help maintain a steady flow of activity throughout the year.
Stamp Duty Changes: What You Need to Know
One of the biggest factors impacting the market in 2025 will be the reversion to higher Stamp Duty rates in April. For those who aren’t familiar, Stamp Duty is a tax paid when you buy a property, and temporary reductions were introduced to boost the market in recent years.
From April 2025, these temporary reductions will come to an end, meaning buyers will face higher Stamp Duty bills on their purchases. Here’s what that means in practical terms:
- Buyers in early 2025 will rush to complete their purchases before the higher rates kick in.
- Sellers could benefit from this increased activity, especially if they’re marketing their property in the first quarter of the year.
- Once the new rates come into effect, we may see a slowdown in activity as buyers adjust to the higher costs.
If you’re thinking of selling in 2025, it may be worth listing your property sooner rather than later to take advantage of this early-year rush.
What Buyers and Sellers Can Expect in 2025
For Buyers:
If you’re planning to buy, the first few months of the year could be a great time to act. Mortgage rates are stabilising, and with some lenders cutting their rates to compete, there are opportunities to secure a better deal.
However, it’s important to keep an eye on interest rates throughout the year. Experts forecast for 4% price growth in 2025 depends on mortgage rates continuing to fall in line with expectations. Any unexpected spikes in rates could impact affordability and dampen demand.
For Sellers:
For sellers, the first quarter of 2025 presents a key opportunity. With buyers rushing to complete purchases before the Stamp Duty changes, listing your property early could help you capitalise on this demand.
Longer term, the market will remain sensitive to interest rates. However, with Dorset’s property market showing resilience, particularly for family homes and coastal properties, well-presented properties at competitive prices should continue to attract strong offers.
Key Takeaways
- The first quarter of 2025 is likely to see peak activity as buyers rush to beat the Stamp Duty changes.
- Stamp Duty rates will increase in April, which may cause a slowdown in the market after that point.
- Mortgage rates are stabilising, and some lenders are cutting rates to attract buyers.
- Experts forecast is for 4% price growth in 2025, but this relies on mortgage rates continuing to fall.
Is Now the Right Time to Buy or Sell?
Ultimately, the best time to buy or sell depends on your individual circumstances. If you’re thinking of making a move, the first few months of 2025 could offer a great opportunity to take advantage of high demand and competitive mortgage rates.
At Max 25, we’re here to help guide you through the process, offering expert advice tailored to your needs. Whether you’re buying or selling, we’re committed to making your property journey as smooth and successful as possible.
Thinking about a move? Get in touch today and let’s start planning your next step! 🏡
