Market trends, prospects for 2025, and the revival of investor confidence
Published on 18th December 2024
An overview of the most recent market developments and prospects to consider.
Gateway explores all the latest insight from a range of property experts, including a diverse range of opportunities on the horizon in the realm of Build-to-Rent, co-living spaces, student housing, hotels and offices for 2025.
We also delve into UK house price projections, forecasted opportunities and the housing market as a whole.
Read on for the latest property news!
House sales and base rates
The average property price is now £267,200, as reported in November 2024 by Zoopla, an increase of 1.5% compared to the previous year, and an impressive 5% increase in the number of housing transactions, which is expected to reach 1.15 million. The prices of these homes are expected to climb by 2.5% in 2025.
Zoopla surmises that throughout 2024, movers have returned to the market with a healthy stock of homes for sale, which has supported sales volumes. The consensus being there is a considerable push for sales to go through quickly, as serious buyers look to lock in sales to beat the return of higher stamp duty rates from April 2025.
Built-to-Rent developments
As mentioned by The Property Reporter, Build-to-Rent developments are a promising investment class in high-demand areas such as Birmingham, Manchester, and London. With a growing population, government efforts, the expansion of Build-to-Rent, and the long-term planning that investors are anxiously anticipating, these factors may very well be the positive, driving force for the rental market.
2025’s trends and opportunities
The Property Reporter has revealed what areas of the UK real estate market they believe will benefit from a diversification of different opportunities in 2025, with the following key growth areas:
Co-living – This model capitalises on shared living spaces combined with private quarters, fostering community while maximising space efficiency. A key advantage for developers.
Hotels – The hotel sector has rebounded strongly, nearing pre-pandemic performance levels, with £4.5 billion transacted so far and projections of £6 billion by year-end.
Student Living – University towns like Oxford, Cambridge, and Bristol lead the way, driven by consistent demand and double-digit rental growth post-COVID.
In conclusion
The UK real estate market in 2025 presents a landscape rich with opportunity but demands a nuanced and strategic approach to thrive amidst economic headwinds. The market will favour those who remain agile, forward-thinking, and well-informed, positioning themselves not just to adapt to the challenges but to capitalise on the opportunities of the year ahead.
Nathan Emerson, CEO of PropertyMark, as featured In Property Industry Eye, said:
“The trend of increasing house transactions is likely to set to continue as stamp-duty increases loom from April 2025.
With borrowing rates also lower than this time last year, and with more homes coming to the market, this mixture has provided aspiring or current homeowners with the confidence and extra affordability to make their house move.”
Even with December typically being a quieter month, the market is showing signs of resilience and optimism as we head into the New Year.”
Sell your home with Gateway
With our nationwide presence, low fixed prices and maximum exposure in all the right places, Gateway is perfectly poised to market your home in time for Christmas and the New Year.
Speak to our friendly team today by calling 01702 443 546 or visit our website – gatewayresidential.co.uk.