Published by: Alex Maile
January is the month when we take stock of the previous year and look at what’s in store for the current one.2024 was certainly an interesting year – inflation and mortgage rates finally started to come down, the cost of living eased, and we had an election, a new Labour government and the now infamous ‘Budget of Doom.’
All the predictions had pointed to a slight dip in house prices, but the market shrugged it off and ended the year 3.3% up.
2025 promises to be another lively year, with all eyes on the base rate. Just recently, experts were warning that government borrowing would mean it would stay higher for longer. Then, inflation took an unexpected tumble, and now there’s talk of a rate cut as early as next month.
On its current trajectory, most commentators are forecasting house prices to rise between 2% and 5% this year, but if the base rate drops significantly, it could give the market a real boost.
It was a very different sort of year in the rental market, with 2024 something of a turning point. Affordability finally began to bite, and the unsustainable rent rises of recent years started to ease. That said, demand is still outpacing supply by some distance.
In 2025 and the Renters’ Rights Bill in the pipeline, the rental market is not easy to predict. A number of landlords have already sold up, reducing supply, but not nearly as many as was feared and those that are left are seeing improved yields.
Very few, though, are predicting rents to go back to their previous levels of growth and rises are expected to be around 3%. In balance, that’s good news, as there is the danger of defaults if tenants’ finances get too stretched and that would benefit no-one.
There is no doubt, though, that the Renters’ Rights Bill will bring some big changes for everything from the ending of no-fault evictions and fixed-term tenancies to a new landlord ombudsman and rules on pets, so it will be a while before it all settles down. But don’t worry, we are here to help guide you through it all. All you need do is give us a call.
Right, that’s it from me for this month. All that remains is for me to wish you all a belated happy and prosperous New Year and I’ll be back again next month.