Weekly Expert Insights: Market Surprises and Legislative Changes
Rightmove Reports Seasonal Price Falls but Predicts 2025 Growth
Rightmove’s latest data highlights a seasonal dip in asking prices for December, a typical trend for the time of year. However, the year-end figures still show a 1.4% increase in house prices compared to 2023.
Looking ahead, Rightmove forecasts a 4% rise in house prices in 2025, reflecting ongoing confidence in the property market despite broader economic uncertainties. For buyers and sellers, this signals a strong outlook for the year to come.
Zoopla’s Report: Rental Affordability Trends in Focus
Zoopla’s newest report on rental affordability reveals that after years of rapid growth outpacing income levels, rents have now stabilized. This alignment with earnings brings some relief to renters following a period of significant pressure.
The report also revisits the period between 2016 and 2019, showing how rents became increasingly affordable—a trend often overlooked in discussions about housing costs. For a detailed analysis, Zoopla’s full report provides valuable insights for renters, landlords, and investors.
Bank of England Holds Base Rate Steady at 4.75%
The Bank of England has opted to maintain the base interest rate at 4.75%, with the majority of the Monetary Policy Committee (MPC) voting to hold steady amid ongoing economic uncertainty.
This decision comes as inflation rose to 2.6% in November, exceeding the Bank’s 2% target. Factors influencing the cautious approach include:
Geopolitical Tensions: Uncertainty in global trade, particularly following Donald Trump’s election and his proposed tariffs.
UK Fiscal Policies: The government’s recent £40bn tax-raising budget, including higher Employer’s National Insurance contributions, has raised concerns about its impact on businesses.
While some MPC members pushed for a 0.25% rate cut, Governor Andrew Bailey emphasized a measured approach: “We believe a gradual approach to future interest rate cuts is right, but the heightened uncertainty means we can’t commit to when or by how much rates will change in the coming year.”
Economic Impacts and the Property Market Outlook
Broader economic challenges, including potential price increases and job losses in retail, highlight the ongoing strain on households. However, the property market remains resilient:
House Prices: Rightmove’s confidence in a 4% rise in 2025 signals optimism for buyers and sellers.
Rental Market: Zoopla’s findings on stabilized rents indicate improving affordability for tenants.
As we approach 2025, the UK property market continues to show strength, offering opportunities for buyers, sellers, and renters alike.
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