Rents and house prices will rise in 2025 – Jackson-Stops

The estate agency Jackson-Stops is predicting a 2-3% rise in rents across its network in the next 12 months.

However, its 2025 property market prediction warns that inflationary pressures and affordability constraints will limit further increases.

Also, the potential exit of smaller landlords due to the Renters’ Rights Bill could boost sales supply for first-time buyers and investors.

Legislative changes for landlords

Will Jordan, the director of lettings at Jackson-Stops in Alderley Edge, said: “The introduction of the Renters’ Rights Bill, coupled with proposed changes to Energy Performance Certificate (EPC) requirements will be important legislative changes for landlords and investors to navigate.

“While some uncertainty still remains on what these changes will mean in practice, there are opportunities for new and seasoned investors.

“The potential exit of smaller, accidental landlords from the market could create opportunities for professional landlords to acquire properties at favourable prices.

“These investors, equipped to navigate the new regulations, can benefit from long-term, stable rental income.”

Lettings demand is high

For London’s sales and lettings market, the agency says that the Pimlico and Westminster areas have a market which is showing resilience and growth.

Harry Buchanan, the director of Pimlico and Westminster, said: “Despite potential changes in capital gains tax, now is a great time for sellers to act, especially since the selling process can take longer than expected.

“The possibility of lower interest rates could attract even more buyers and the end of the stamp duty holiday for first-time buyers on March 31 is likely to boost transactions.”

He added: “On the lettings side, demand remains high with rents staying strong and long tenancy terms providing landlords with steady income.

“Those with HMO licenses for their three-bedroom properties are seeing particularly significant benefits.”

House prices to remain on par

Nationally, Jackson-Stops expects house prices to remain on par with 2024, with a third of agents predicting a slight increase.

The first quarter of next year is expected to be particularly active as buyers look to capitalise on Stamp Duty incentives and pent-up demand.

However, economic headwinds and policy changes will impact the market.

The recent Autumn Budget’s increased stamp duty on second homes and buy to-let properties could dampen activity from investors.

Nick Leeming, the firm’s chairman, said: “We anticipate a more balanced market in 2025, benefiting both buyers and sellers.

“Increased buyer confidence and stabilizing mortgage rates will encourage activity, especially in the prime market.”

The agency is also predicting that upsizing families and downsizing retirees will be the main drivers of property sales.

However, lengthy transaction times, averaging more than three months in some markets, remain a challenge.

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