To Buy Or Not To Buy
Now we do not not have a crystal ball, (imagine the fun if we did). What we do have to answer this question is access to leading data, insights from property lawyers or experts and awareness of the legal changes that could affect the market this year. If you are considering buying a property in the UK, here are some factors that determine whether or not 2025 will be a good year to strike a deal.
Mortgage Rates Forecast: Interest – ing
During the pandemic, mortgage rates dropped to an all time low to ease the financial pressure of us all being stuck at home indefinitely (let’s not talk about that anymore). Naturally, these climbed back up to the 6-7% market rate over the last few years. Higher interest rates have kept many potential buyers out of the market. This year they may drop slightly which could tempt those buyers back to viewing.
Increasing your deposit allows you to take advantage of the drops and to do so you may want to consider a re-mortgage. This would lower the interest you pay back in the long-term. If you would like to discuss a remortgage, speaking to a law firm near you and an experienced lender is recommended. Kris Culley, an investment consultant and founder of William Vale Properties advises that “while interest rates are not ideal, this allows for more opportunity and there are better deals to be found” So, it’s certainly worth keeping on scrolling Rightmove.
Is The Price Right?
Property prices had a slow climb in 2024, according to the land registry house prices increased by around 3%. Rightmove predicts 2025 to achieve around 4% growth, this combined with the higher stamp duty from April 1st could affect buyers, particularly those buying their first home. Agents advise to keep an eye on how long a property has been on the market, the longer the better when it comes to negotiations. Securing a good deal under tighter market considerations could leave more room for a spike in capital growth, this is worth considering – are you in it for the long term or a quick turn around? “Every buyer’s motivations are different and this affects whether a property price is right for them” says Kris. It seems there is an art to property prices – speaking to an expert can help you master it.
What Are The Major Legal Changes in 2025?
2025 will be a key year for legal changes to the property market, buckle up and let’s crunch the big ones. Firstly new stamp duty rates kick in from April 1st 2025, increasing the purchase prices for all properties over £125,000 and for those buying second homes. Changes to the Landlord and Tenants Act will give tenants more protection than ever before, this includes the proposal to abolish the ‘no- fault’’ eviction meaning landlords will no longer be able to evict a tenant, just because.
Why? The law will ask. There will also be changes to EPC requirements with a higher rating of C or above becoming mandatory. This could mean significant costs for landlords to update properties, and hefty fines for not doing so. If you’re scratching your head about legal compliance in 2025, Waterstone Legal, one of the best law firms in London, is offering a free consultation for all Landlords in March.
Location, Location
Whatever year you buy, location always plays a pivotal role in finding the best deal. The ideal location is different for every buyer. If you are a landlord, choosing an apartment close to transport links and with a high employment rate is important to ensure rentability. Speaking to an agent about where offers the highest yield is key. If you are buying a home, making sure you have schools, supermarkets and a good commute to work are all vital homework. If you are buying purely for investment, it is worth doing your research into where it is set to soar in 2025, and make sure you narrow your search parameters to the best contenders.
Love Over Logic
As every home-owner or tenant knows, home is where the heart is. And this is one of many considerations that any buyer needs to allow space for consideration. If this is going to be where you live, it is important you pick right. This may mean love over logic when it comes to price, mortgage rates and advice from everyone you’ve been sending links to properties too. There has to be a balance of practical considerations and emotion, and as Roger Collings, a London sales agent with over 50 years experience says, if you have found your dream home “It’s always a good time to buy, why wait?”
The Wrap Up
The property market is set for some interesting changes in 2025, with mortgage rates stabilising and some great deals being available. House prices could climb by up to 4% and legal changes will give tenants more protection. If you are considering buying there is a lot to consider from how best to finance, finding the perfect property to having the right property lawyer to handle your conveyancing.
Keep searching, you never know, this could be the year you find your dream home.
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