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Chestertons’ latest property market forecast aims to answer that all important question “What will happen to property prices next year?”.

Including:

Price Predictions: UK property prices are expected to grow gradually in 2025, with a projected increase of 3.4% nationwide, 3% in London and 3.5% in Prime Central London. While rapid price increases are not expected, improved affordability and market confidence should support steady price property growth over the next three years.
Rental Growth: London’s rental market is expected to see a modest 1.5% increase in 2025, which is slightly below the inflation rate. Smaller centrally-located properties with good public transport links are expected to remain in high demand and may potentially see higher higher rent increases.
Stamp Duty Changes: The higher stamp duty rates for buyers of second homes and buy-to-let properties announced in October’s budget will reduce investor demand. However, this may create opportunities for first-time buyers to enter the market.
First Time Buyers: From 1st April 2025, the threshold at which first-time buyers will start paying stamp duty will decrease from £425,000 to £300,000 and the maximum property price for First-Time Buyers Relief (a reduced stamp duty rate) to apply will decrease from £625,000 to £500,000.
Policy Changes: A stronger pound and the removal of the non-dom tax regime could reduce demand from overseas buyers, which will have a disproportionate effect on the property market in Prime Central London.

Chestertons’ latest property market forecast aims to answer that all important question “What will happen to property prices next year?”.

Including:

Price Predictions: UK property prices are expected to grow gradually in 2025, with a projected increase of 3.4% nationwide, 3% in London and 3.5% in Prime Central London. While rapid price increases are not expected, improved affordability and market confidence should support steady price property growth over the next three years.
Rental Growth: London’s rental market is expected to see a modest 1.5% increase in 2025, which is slightly below the inflation rate. Smaller centrally-located properties with good public transport links are expected to remain in high demand and may potentially see higher higher rent increases.
Stamp Duty Changes: The higher stamp duty rates for buyers of second homes and buy-to-let properties announced in October’s budget will reduce investor demand. However, this may create opportunities for first-time buyers to enter the market.
First Time Buyers: From 1st April 2025, the threshold at which first-time buyers will start paying stamp duty will decrease from £425,000 to £300,000 and the maximum property price for First-Time Buyers Relief (a reduced stamp duty rate) to apply will decrease from £625,000 to £500,000.
Policy Changes: A stronger pound and the removal of the non-dom tax regime could reduce demand from overseas buyers, which will have a disproportionate effect on the property market in Prime Central London.

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