Property Prices in London Expected to Grow by at Least 5% in 2025
2025 is shaping up to be a fantastic year for the property market. With prices predicted to grow by 5% in London and mortgage rates expected to fall by 1.5%, it's an opportune time for both buyers and sellers.
Whether you're planning a move or just curious about your home's value, now’s the time to act. The year 2025 has already seen a stronger start for property sales compared to 2024 and 2023. This momentum is a positive indicator for the market's health and growth potential.
London Construction Magazine's forecasts a 5% rise in average asking prices in London and 3% for the rest of the UK, marking their highest prediction since 2023. This growth is driven by a combination of factors, including increased demand and limited supply. Lower borrowing costs are making it easier for buyers to enter the market.
With mortgage rates expected to fall, more people are likely to take advantage of the favorable conditions, further driving demand. A significant portion of the population is looking to buy in the near future. According to recent surveys, 22% of renters and 17% of homeowners are planning to purchase a property within the next two years. This rising demand is expected to keep the market buoyant.
Homeowners can expect their property values to rise, making it a great time to consider selling or refinancing. The predicted price growth means that your home could be worth significantly more by the end of the year. If you've been thinking about upgrading to a larger home or a different neighborhood, the current market conditions could make it easier to achieve your goals. With higher home values and lower mortgage rates, you might find that your dream home is within reach. For buyers, it's important to act quickly if you find a property you love. Delaying your decision could mean paying more in the future. Securing a mortgage pre-approval can give you a competitive edge in a hot market. It shows sellers that you're serious and financially prepared to make an offer. When choosing a property, consider areas with strong growth potential. Look for neighborhoods with planned developments, good schools, and amenities that are likely to attract future buyers.
2025 presents a unique opportunity for both buyers and sellers in the property market. With prices set to grow and mortgage rates expected to fall, now is the perfect time to check your home's value and make informed decisions about your next steps. Whether you're looking to move or simply curious about your property's worth, staying informed and proactive will help you make the most of the favorable market conditions.
