Escalating Trends: Insights from Property Market Experts on Predicted House Price Movements in 2025
Several estate agencies and property market analysts have shared their predictions for UK house price growth in 2025. Here's a summary of their forecasts:
Savills projects a growth of around 4% in 2025. They had previously revised their forecast downward but maintain a positive outlook for the longer term. However, Prime Central London house prices are forecasted to decrease by 4%. Outer Prime London house prices are expected to increase by 2.5%, while Greater London house prices are forecasted to increase by 2%.
Hamptons expects house prices to rise by 3% in 2025, marking a new cycle with cautious optimism. Great Britain house prices are forecasted to increase by the same percentage.
Knight Frank forecasts a cautious increase, similar to Zoopla's 2.5% rise for 2025. They have downgraded their near-term forecast for Prime Central London. UK house prices are predicted to increase by 2.5%, Prime Central London house prices by 2%, and Prime Regional Markets house prices by 2%.
Chestertons expects London house prices to rise by 3%, but specific forecasts for the rest of the UK are not available.
Zoopla forecasts a 2.5% rise in house prices for 2025. They also expect the current sales momentum to continue next year, with transactions likely to rise from 1.1m in 2024 to 1.15m in 2025.
Rightmove anticipates a 4% increase in the national average asking price, with London price growth level or marginally ahead of national price increases. However, specific forecasts are not available for Rightmove.
Strutt & Parker predicts mainstream UK house prices to increase up to 5%, but specific forecasts for London and other regions are not available. Prime Central London house prices are also predicted to increase up to 5%.
Jackson-Stops expects more than a third of UK house prices to hold in 2025, with another third predicting a rise between 2% and 4%. They also expect 'significant activity' in the prime market, boosted by increased buyer confidence and a more stable economic outlook.
Nationwide has been involved in discussions about lending practices and their impact on the market, but specific forecasts for 2025 are not available.
Nick Leeming, Chairman of Jackson-Stops, describes the outlook as 'quietly optimistic' with demand moving in the right direction. Jackson-Stops suggests that mainstream house prices will generally "remain on a par with 2024", implying little to no growth.
These forecasts suggest a generally positive outlook for UK house price growth in 2025, with some variations across different regions and market segments. Lower mortgage costs, modest economic growth, and inflation staying around the Bank of England's 2% target are expected to support UK house price rises in 2025, according to Chestertons. However, the expiry of the stamp duty holiday could lead to a period of weakness, as predicted by Nationwide.
In light of these forecasts, individuals investing in real estate may find opportunities for growth in various UK regions, with the housing market anticipated to rise by approximately 2-5% in 2025. Consequently, individuals focused on personal finance management should consider allocating a portion of their investment portfolio to housing, given these positive projections for the UK housing market in 2025.
