As the festive season approaches, it’s a time when families—both young and old—come together, often sparking discussions about future plans, including moving home. With recent developments following the budget and a drop in the Bank of England's base rate, much has been written about the state of the housing market. But what are the facts?
An Historical Perspective on Borrowing
The average mortgage interest rate over the past 50 years has hovered around 8%. By comparison, today’s rate of 4.75% can be considered competitive. Although we experienced historically low rates of 0.1% during unprecedented times, it’s safe to say that we’ve returned to a more “normal” landscape. For many homeowners, the current market offers opportunities. Those coming off two-year fixed mortgage deals, set at higher rates, may actually see lower repayments now. While those exiting five-year fixed-rate agreements may face slightly higher rates, it’s worth noting that many borrowers have overpaid during recent years, lessening the financial impact of this adjustment.
Looking Ahead
Most economic commentators predict the Bank of England base rate will remain steady into the new year, with a potential further reduction expected in February. This anticipated drop could provide a welcome boost to both buyer confidence and market activity.
Property Prices: A Resilient Market
Despite mixed reports, property continues to be an excellent investment in the UK. The latest house price index reveals a 1.5% year-on-year growth, supported by rising salaries and the current competitive mortgage rates. This resilience underscores the long-standing strength of the UK housing market. Additionally, buyers now have greater choice, with many estate agents reporting a 30% increase in available stock compared to last year. This gives prospective buyers a better chance of finding their dream home.
The Importance of Confidence
The housing market thrives on confidence. While the recent budget offered little to strengthen sentiment, the anticipated rate drop in early 2025 could reignite positive momentum and further bolster the upward trend in market activity.
As we approach the new year, the property market is gearing up for one of its busiest times, and 2025 is shaping up to be no exception. January traditionally brings a surge in buyer activity, with record-breaking valuation requests and soaring demand for new listings on platforms like Rightmove.
If you’re considering selling your old home and finding your dream property, December is the ideal time to prepare. Here’s why:
1. Peak Buyer Interest
After the festive period, buyer activity spikes dramatically. Rightmove consistently reports significant increases in traffic and enquiries from motivated buyers in January. Listing your home early positions it to catch the attention of serious buyers eager to make a move.
2. Early Listings Get Maximum Exposure
Homes listed at the start of the year face less competition and enjoy the benefits of heightened interest from determined buyers. By listing early, you ensure your property gets seen by the right audience at the right time.
3. Leverage New Year Resolutions
The new year often inspires people to act on their property goals. Many buyers and sellers are ready to kickstart their plans, and your home could be exactly what they’re looking for.
4. Showcase Your Home’s Best Features
Use December to prepare your property for the market. With professional photography, videos, and staging, you can highlight its unique features and ensure it stands out in a competitive marketplace.
Get Market-Ready for 2025
Preparing your home this December positions you to take full advantage of January’s buyer frenzy. By starting now, you’ll be ready to maximise your property’s visibility, attract motivated buyers, and secure the best possible value.
Don’t miss this prime opportunity—take the first step towards selling your old home and finding your dream home as 2025 begins. Reach out to our team today, and let us help you make your move