Property market optimism is high with the majority of estate agents predicting that the improved market conditions seen in 2024 are set to continue over the next year, latest analysis from GetAgent.co.uk reveals.
The majority of agents believe 2025 is set to bring another year of positivity for the property market, with three quarters (76%) stating that they believe the market will continue to recover over the next year.
Mortgage approvals are the first sign of improving market health and, having first hit the 60,000 monthly threshold back in February, the latest Bank of England data shows that they have also been climbing consistently since March, hitting 68,303 in October.
And nearly seven out of 10 (67%) agents surveyed by GetAgent believe that this increasing level of buyer demand will continue in 2025, with more mortgages being approved.
SALES VOLUMES
The majority of those surveyed also believe that we will see this initial gauge of buyer activity convert, with 64% expecting an increase in sales volumes in 2025 versus 2024.
An increase in market activity often drives house price performance and a similar amount (69%) of those surveyed expect house prices to climb in 2025, following months of consistent upward growth in 2024.
However, whilst 2025 is expected to be another year of positivity, estate agents do believe that the looming SDLT deadline at the end of March could bring a momentary bump in the road.
With current SDLT relief thresholds set to end from 1st April, homebuyers will be scrambling to complete before this cost is set to climb.
Again, around seven out of 10 (67%) of those surveyed by GetAgent believe that once this deadline does expire, there will be a market correction, as the market returns to normality.
AFFORDABILITY ISSUES
When asked what they believe will be the biggest challenges for the market in 2025, ongoing affordability issues related to high house prices ranked top.
Mortgage rates remaining higher than previous years was the second biggest challenge the market faces for the year ahead, with a lack of supply to meet demand also expected to prove problematic.
CHALLENGING LANDSCAPE
Colby Short, Co-founder and Chief Executive of GetAgent.co.uk, says: “Market conditions have been far from ideal in 2024 and buyers, in particular, have continued to face a challenging landscape, with mortgage rates remaining significantly higher than they’ve become accustomed to in recent years.
“Despite this, it has been a year of overall positivity. We’ve seen an increase in buyer activity and property values have also increased, albeit at a more measured pace.
“The general consensus is that 2025 is set to bring more of the same, with the current market recovery set to continue.”
And he adds: “Of course, with another looming stamp duty deadline, we can expect a heightened level of activity in the short-term and this will almost certainly be followed by a period of correction as the market returns to normality.
“In the long-term, however, the outlook is a positive one.”
