Market Comment (January 2025)
2025 is underway, even though January often feels like a holding month as people gear up for the year that lies ahead. That said, the property market has been active, we’ve read about that nationally, and we’ve experienced it locally. If you want to stay up to date with what is happening, here and across London or the UK, we have you covered.
Zoopla painting a rosy picture at the start of 2025
January is often a month to ensure and get through as opposed to being enjoyed. This is why seeing positive news in the initial month of the year is pleasing, and something people will take as a good omen for 2025.
Zoopla is one of the leading sources in the UK property market, and their data suggests this year has started positively. If anything, they say the upturn in interest began on Christmas Day 2024, which is even earlier than the expected Boxing Day Bounce.
For the start of 2025, Zoopla says vendor sales leads increased by 25% in the opening week of 2025 compared to the Christmas Eve figures.
There has also been an increase in valuation leads, as well as time spent on the website. More importantly, there has been an increase of 12% in listings per branch on Zoopla compared to the start of 2024.
That’s a lot of data to take in over a short period of time, but it’s all positive, and hopefully a sign there will be significant movement in the 2025 property market.
Alex Rose is the Director of Sales at Zoopla, and they’ve spoken extensively on this matter, saying; “It is incredibly encouraging to see the property market off to a flying start in 2025, with the momentum from 2024 continuing over into 2025.”
SDLT delays could be an issue to bear in mind
Mind you, it would be wrong to suggest everything is perfect in the property market! Moverly recently carried out a survey of homeowners in England who have had an offer accepted on a property in the last three months.
51% of respondents have faced delays with their purchase with a lack of proactive services from solicitors named as the biggest factor in the delay. The second most common factor was the seller failing to provide information. The third most commonly cited factor was the chain, which as everyone knows can derail even the smoothest of property sales.
Delays are always an issue with property purchase but with Stamp Duty Land Tax changes coming into effect in spring, delays can be catastrophic for buyers and sellers in the current market.
The study found:
● 82% of property buyers are worried their purchase will not conclude before 1st of April 2025, leaving them liable for higher stamp duty costs
● 74% intend to conclude their purchase and pay the higher price, if they face it
● 12% of respondents said they’ll need to lower the price they pay
● 9% say they’ll have to reassess their decision
● 5% of respondents said they would pull out of the purchase if they don’t conclude it before the deadline
Gemma Young is the CEO at Moverly, and she has spoken about this topic, saying: “Nothing grinds the market to a halt quite like a stamp duty deadline. As heightened buyer activity puts a serious strain on the process of purchasing, particularly with respect to the conveyancing process. So it’s no surprise that half of those who have had an offer accepted since the Autumn Budget are now experiencing delays with the progression of their purchase and this number is only likely to climb over the coming months.”
Will potential mortgage changes offset SDLT issues for buyers?
The UK government may relax strict mortgage rules introduced after the 2008 financial crash, aiming to boost economic growth and allow borrowers greater flexibility. Proposed changes include easing caps on lending limits, reducing stress test requirements, and considering rental payment history in affordability checks.
These adjustments could help would-be buyers with smaller deposits access mortgages more easily.
While this move might stimulate the housing market and make homeownership more attainable, it also raises concerns about financial stability. Buyers and sellers should watch for further updates on these potential changes.
Andrew Montlake, representing Coreco mortgage lenders said: “Introducing a bit of sensible risk is a good thing. It will give lenders some room to help more people get the borrowing they need.”
As is always the case in the property market, reacting quickly with confidence is vital in making the best decision. For these issues, and a whole lot more, you need help from a local estate agent with a strong track record across the years in the Leytonstone property market.
At Trading Places, we ensure you always make an informed decision.
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.
Click here for an online Valuation (a starting point)
Click here for a Desktop Valuation (a more detailed option)
Click here to book a Home Visit Valuation (the full works)