Sales Activity on the Rise

The number of sales being agreed is currently 26% ahead of where it was at this time last year. Sellers are also more active, with the number of new listings entering the market up by 6% compared to 2023. These figures suggest a market that, while still price sensitive, is navigating the affordability challenges of recent months more effectively.

Impact of Bank Rate Cuts on Buyer Demand

Recent Bank Rate cuts are starting to show an impact. After a dip in buyer activity following the Autumn Budget, demand has rebounded. The number of buyers contacting estate agents about homes for sale has risen to +23%, up from +18% shortly after the Budget announcement.

This recovery reflects growing buyer confidence, with many anticipating further improvements in mortgage rates over the coming year. Although Bank Rate reductions are expected to be slower paced moving forward, the general trend is positive for market sentiment.

Rightmove’s 2025 Forecast: A 4% Price Increase

Looking ahead, Rightmove predicts that average new seller asking prices will rise by 4% in 2025, marking the strongest forecast since 2021. This modest price increase will likely be driven by lower mortgage rates making home buying more affordable and the release of pent-up housing demand.

A surge in completed sales is also anticipated for March 2025, as buyers rush to beat the Stamp Duty deadline at the end of that month.

Sellers Face Competition

While buyer demand is improving, the market remains highly competitive for sellers. The number of homes available is at its highest level for this time of year since 2014, giving buyers more choices than ever. To stand out, sellers must focus on presenting their properties well and pricing them realistically.

Affordability remains a key concern, with buyers still feeling the effects of higher costs. With slower wage growth and National Insurance increases in the budget, sellers who are overly ambitious with pricing may struggle to secure offers.

Key Takeaways for Sellers and Buyers 

For Sellers: A well priced, well presented home is critical in this competitive environment. While buyer interest is rebounding, unrealistic price expectations could deter offers.

For Buyers: Improving affordability and the potential for more favorable mortgage rates in 2025 make now a good time to start exploring options.

Whether you’re considering selling your home or starting your search for a new one, understanding the latest trends is key to making the most of current opportunities.

Contact us today to discuss how we can help you navigate the market. Whether you're buying, selling, or both, our expert team is ready to guide you every step of the way.