As we enter a new year, many people will be using this time to reflect on various aspects of their life, but in particular, property and investment.

The last few years have been extremely turbulent in terms of property - from inflation, changes in government, tax increases and the property market in general.

Some good news - things are starting to settle (slightly!) in some ways, making 2025 a great time for people to consider purchasing property, for a home or as an investment opportunity. 

Meanwhile, other aspects remain a difficulty for many. With that in mind, there are still some things to consider about whether 2025 is the right time to buy a property for you, your circumstances and your needs.

Here are some key things to consider if you’re looking to purchase a property in the next 12 months.

Housing market trends: more variety, less competition

Research from Zoopla has shown that following the trends from last year, 2025 is going to see an increase in the number of properties for sale.

This means that potential buyers will have more variety to choose from, and with that in mind, there will also be less competition and less chance of bidding wars.

Because of the number of homes predicted to be available for sale in 2025, people can feel more confident with their purchase - having a variety of properties to view beforehand and knowing that they don’t need to rush into making any decisions.

This enables people to take their time, and without ‘panic buying’, are able to enlist professionals where necessary, such as RICS surveyors to ensure their property is suitable and safe for its intended purpose.

Economic trends: stamp duty, mortgages rates and house prices

Whilst not a historic low, mortgage rates are set to fall somewhat, and could even be as low as 4% as we continue through the year.

Although there are other financial aspects to consider, a fall in mortgage rates will no doubt help potential homebuyers and property investors make the move to buy, making monthly payments a little more affordable.

In terms of stamp duty, the 1st April 2025 will see this increase, with first time buyers becoming the most affected by the change. 

Currently, first time buyers aren’t required to pay stamp duty unless the property is worth more than £425,000, however this threshold is reducing to just £300,000. This will take the cost of stamp duty from nothing, to £6,250 for such properties - making this something for people to consider and be conscious of when buying a property for the first time.

As well as this, the current threshold for property owners paying stamp duty will also be changing (by half!), impacting the majority of people looking to buy or sell a property. 

House prices are also expected to rise and although not by a significant amount as seen in previous years, this will benefit both homeowners and investors providing financial growth and stability, whilst causing somewhat of a barrier for first time buyers.

Seasonality

Many people enter a new year looking at elements of their life they’d like to change - property being one of them.

The new year may not be the best time to put your house on the market, as we typically see a dip in house prices during the winter and festive months. 

Spring and autumn tend to be the most favourable times of year for people to buy and sell their homes, without the stress or run up to Christmas and the summer holidays.

As we enter 2025, people should use this time to consider exactly what it is they are looking to sell and/or purchase, and plan strategically to get the very most out of their situation financially. 

However, first time buyers may want to use the slower times of year, such as summer and winter to try and bag themselves a deal or reduction on properties struggling to sell due to the time of year.

Reason for purchase

Whilst the time of year can play a huge role in the purchase of a property, it is also worth considering the reason for purchase, too. 

From first time buyers and families looking to upsize or downsize to property investors, the reason you’re purchasing should also be a contributing factor.

Property should be seen as a long-term investment, so potential buyers should look to the future and longevity of their purchase. 

If it’s a family home you’re after, you may be less willing to wait if you think you’ve found your dream home. However, if you’re an investor or property developer, you may be happy to keep looking or waiting for a time that will be most beneficial financially.

Personal finances and preferences

Potential buyers should look at their personal finances, lifestyle, career stability and see what options are available and best suited to their needs.

Whilst they may find themselves the ideal property, it may be out of budget, out of preferred location or the property market just might be suitable for them at that time. 

Consider whether it is worth saving money for longer to increase your deposit to lower mortgage and interest rates. 

For others, enlisting the help of a professional RICS surveyor, particularly on older properties to ensure that the cost of potential works are achievable and remains within budget.

Is 2025 the right time to buy a property?

The answer isn’t a straightforward yes or no - it comes down to each individual, their circumstances, requirements and needs.

For many, 2025 is absolutely the right time to purchase a property due to the following reasons:

• A more balanced, well-rounded property market
• A steadiness in mortgage rates
• Manageable increase in house and property prices

Are you buying a property in 2025?

For expert advice and a free quotation for a professional RICS homebuyer survey, contact us today!