The property market is looking brighter as we head into 2025, with positive news on interest rates and house price predictions. The Bank of England recently announced that it will hold the base interest rate steady at 4.75%, a move widely anticipated given the slight uptick in inflation from 2.30% to 2.60%.
Malcolm Prescott, Managing Director of Webbers Estate Agents—celebrating 100 years in business this year—shared his thoughts on the decision: "There really is no surprise that The Bank has chosen to hold rates at 4.75% as we approach year-end. Clearly, they are factoring in the recent inflation increase and prioritising long-term stability, which should be welcomed."
Looking ahead to the property market in 2025, Malcolm remains optimistic: "I personally believe we're in a better position as we approach the new year. Inflation last year was at 3.90% and interest rates were higher at 5.25%. Now, with house prices predicted to rise by 5 to 6% next year, it's great news for homeowners and investors alike. There’s a sense of positive sentiment building, particularly in the early months before the anticipated stamp duty changes that will affect all buyers."
However, challenges remain. One of the most significant issues in the housing market is the time it takes from finding a buyer to exchanging contracts. Recent data from the Home Moving Trends Survey revealed a stark contrast between expectations and reality. While 82% of home-sellers anticipated a process lasting no more than three months, only 43% experienced this timeframe, with another 44% needing up to six months to reach an exchange.
Lee Hussell, Main Board Director at Webbers Estate Agents and head of conveyancing, explained how the company is addressing this: "To speed up the sales process, Webbers will trial an innovative new service in early 2025. This will involve launching select new property listings with a digital legal pack, ensuring that when a buyer is found, a contract is ready immediately. We believe this could significantly reduce delays."
Lindsay Braddick, Residential Sales Director, emphasised Webbers' commitment to innovation and client care:
"At Webbers, we’ve always aimed to lead the way, helping our clients plan their moves with confidence, professionalism, and care. Our focus is on making 2025 a successful year for everyone involved in the property market."