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COLBURN
5 & 6 BAILEY COURT
COLBURN BUSINESS PARK
RICHMOND
NORTH YORKSHIRE
DL9 4QL
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Residential Management Team
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The last 12-18 months have undoubtedly been eventful for the residential property market, influenced significantly by major political and economic events. Extensive media coverage around the perilous state of the economy in the build up to the general election last July, anticipation for the first Labour Budget in 14 years at the end of October, and the USA presidential election in November all played a key role in stifling activity in a year of under achievement for the market.
Supply Challenges and Seller Hesitation
In line with traditional market trends, activity in the housing market quietened in the run up to the year end with the number of negotiated sales during this period tapering off. By contrast, online buyer activity noticeably increased. This trend has continued since the New Year suggesting that whilst there is some buyer uncertainty around macroeconomic events, others are more pragmatic and eager to proceed. However, this enthusiasm is being somewhat frustrated by the limited housing stock across the sector. The lack of supply is creating a ripple effect, with prospective sellers hesitant to list their homes due to difficulties finding suitable options for their onward purchase. And round it goes.
Fortunately, history suggests such trends are temporary. The prospect of falling interest rates is encouraging sellers to enter the market and the outlook for Spring/Summer 2025 is looking rosier.
Impact of Recent Economic Policies
There is no ignoring the decision of the Labour Government to increase taxes in their search for growth has directly impacted the housing market. Increased employers’ National Insurance Contributions is already stifling investment and putting pressure on inflation which has slowed the rate at which interest rates can be brought down. The direction of travel is clear, but the speed of change is slow. Nevertheless, there is more certainty which will improve market confidence.
Given this, the market outlook looks stable with widespread expectation that house prices will hold steady during 2025, and with some commentators predicating modest single digit growth over the year.
Direct taxation on the property market came in the form of a reduction in Stamp Duty Land Tax relief for first time buyers and the confirmed end of the Help to Buy scheme. While this will affect the new homes market more significantly than our mature rural housing market, its wider impact remains to be seen when the changes take effect in April.
Housing Market Resilience
The UK residential property market has proved to be enduringly resilient of late. It is why home ownership in the UK is widely considered a prudent long-term investment. Despite recent challenges such as the pandemic and global political shifts, the market appears to be moving towards calmer waters, with buyers and sellers well positioned to make informed decisions in a recalibrated yet relatively benign financial environment. World events may yet have an impact, and we wait with bated breath to see what else the new US administration brings to us all.
A Return to Confidence
The UK housing market thrives on confidence like any other – and that confidence appears to be returning. Activity across our offices in the North has already started to improve, with requests for valuations and market appraisals ahead of where they were twelve months ago. As such we anticipate an active 2025, provided buyers and sellers approach the market with both confidence in its stability and realism about property values, accepting the froth generated in the post lockdown market is no longer there.
With annual growth expected to be modest, delaying a sale from spring to summer is unlikely to yield significantly different results with regards to the proceeds of sale. As such, we are advising our clients not to wait, ensuring they capitalise on early interest from eager buyers.
We are proud to offer an award-winning agency service to town, village and rural communities across the north of England. Our experienced teams, based in Barnard Castle, Boroughbridge, and Richmond, are well-equipped to navigate the evolving market. As we progress through 2025, GSC Grays remains optimistic about the opportunities for both buyers and sellers in the residential property market across our region.
GSC Grays News
Residential Property Market: Recent Trends and Prospects for the year ahead
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