0:04 AM, 2nd January 2025, About 3 days ago
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The majority of letting agents (76%) believe 2025 will be a positive year for the property market, but the looming stamp duty deadline means buyers will need to act quickly to complete before costs rise.
According to GetAgent, with mortgage approvals on the rise and more buyers entering the market, house prices are expected to increase.
Data from the Bank of England shows that mortgage approvals have been steadily climbing since March, reaching 68,303 in October.
Data from GetAgent reveals that 67% of agents believe buyer demand will continue to rise in 2025, with more mortgages being approved.
The majority of those surveyed expect this initial surge in buyer activity to convert, with 64% anticipating an increase in sales volumes in 2025 compared to 2024.
As buyer demand increases, 69% of letting agents predict house prices will rise next year.
Co-founder and chief executive of GetAgent.co.uk, Colby Short, says despite challenges 2024 has been a positive year for the property market.
He said: “Market conditions have been far from ideal in 2024 and buyers, in particular, have continued to face a challenging landscape, with mortgage rates remaining significantly higher than they’ve become accustomed to in recent years.
“Despite this, it has been a year of overall positivity. We’ve seen an increase in buyer activity and property values have also increased, albeit at a more measured pace.”
Estate agents believe the stamp duty deadline in April 2025 will bring challenges to the property market next year.
From April, stamp duty thresholds in England will be lowered. For first-time buyers, the exemption threshold will drop from £425,000 to £300,000, while for standard residential properties, it will fall from £250,000 to £125,000.
According to GetAgent, homebuyers will likely scramble to complete transactions before these increased costs take effect.
More than 67% of letting agents believe that once the deadline passes, a market correction will occur as the market returns to normal.
When asked what letting agents believe will be the biggest challenges for the market in 2025, ongoing affordability issues related to high house prices ranked as the top concern.
Mortgage rates remaining higher than previous years was the second biggest challenge the market faces for the year ahead, with a lack of supply to meet demand also expected to be problematic.
Mr Short said: “The general consensus is that 2025 is set to bring more of the same, with the current market recovery set to continue.
“Of course, with another looming stamp duty deadline, we can expect a heightened level of activity in the short-term and this will almost certainly be followed by a period of correction as the market returns to normality. In the long-term, however, the outlook is a positive one.”
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