Market Comment (December 2024)
As we approach the end of 2024, Trading Places wants to provide you with an update on the current state of the property market and what we can expect as we move into 2025. We know the local market well, but we also take great effort to stay in touch with the London, and national market.
December is a month where the property market takes a back seat for many, but as soon as Christmas is out of the way, people’s interest returns with a vengeance. We are here to make sure you are fully informed as to what is happening now, and how this will shape what comes next.
National Market Trends Show Continued Growth
Nationally, the property market is experiencing a period of sustained growth. Halifax data shows UK house prices reached a new record high of £298,083 in November, marking the fifth consecutive monthly increase.
This upward trend is driven by several factors:
Increasing buyer confidence: Eased mortgage rates, along with positive employment figures, have boosted buyer confidence, leading to increased demand for mortgages.
Anticipation of future interest rate decreases: Experts anticipate that interest rates will continue to decrease in 2025, further supporting demand and underpinning house price growth.
The "race to beat the stamp duty deadline": The impending stamp duty increase in April 2025 is motivating buyers to complete purchases before the deadline, creating temporary strength in the market.
Amanda Bryden is the Head of Mortgages at Halifax, and she said: “UK house prices rose for the fifth month in a row in November, up by 1.3 per cent in the month – the biggest increase so far this year. This pushed the annual growth rate up to 4.8 per cent, its strongest level since November 2022. As a result, the record average house price we saw in October edged higher still, with a typical property now costing £298,083.As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Modest growth is better than no growth at all, so if you’re considering a move in 2025, we are here to assist you as best we can.
London Market Shows Signs of Rejuvenation
While London's property market has experienced slower growth compared to other regions in recent years, Rightmove anticipates a resurgence in 2025.
Several factors contribute to this positive outlook:
The return of workers and international buyers: As major companies return to the office and international travel resumes, the demand for London properties is expected to increase.
Closing price gap with the rest of Great Britain: The price gap between London and the rest of Great Britain has narrowed, making London property more attractive.
Expected price growth in line with national trends: Rightmove predicts London price growth to be on par with, if not slightly ahead of, the national average.
Tim Bannister from Rightmove said: “We expect a busier year in 2025, with around 1.15 million transactions completed. Stamp duty charges rising from 1st April means we are likely to see a particularly busy first three months of the year as first-time buyers, home-movers and investors all try to complete on planned purchases and avoid higher charges. The effects of stamp duty rising will be felt for the rest of the year too, and we may see some negotiation tactics play out, particularly on properties close to the £300,000 mark, as both buyers and sellers try to mitigate their higher costs through the price agreed.”
If you are worried about how the stamp duty changes will impact any move you wish to make, or you simply want information about it, we are here to assist you.
Key Considerations for Leytonstone Homeowners
If you are wondering how these factors will influence your next move, please consider the following points:
Rising house prices: The national trend of rising house prices, combined with London's anticipated resurgence, suggests that Leytonstone homeowners can expect to see continued appreciation in property values.
Active buyer market: Increased buyer demand, driven by eased mortgage rates and the desire to beat the stamp duty deadline, indicates an active market for those considering selling their homes in Leytonstone.
Potential for increased competition: As the London market heats up, we may see increased competition from buyers seeking properties in desirable areas like Leytonstone.
Looking Ahead
While the future of any property market is subject to various factors, the current trends and expert predictions point to a positive outlook for the Leytonstone property market in 2025.
As your local estate agent in Leytonstone and surrounding areas, we are committed to providing you with the most up-to-date information and guidance to help you make informed decisions about your property.
We make sure you make an informed move
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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