Property Newsletter 20th Jan 2025
Prosper Esin Property
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RECORD NUMBER OF SELLERS IN PROMISING START TO 2025, BUT UNCERTAINTIES AHEAD
The number of new properties coming to market is 11% ahead of the same start-of-the-year period last year. The number of buyers contacting agents about properties for sale since Boxing Day is 9% ahead of last year, and the number of sales being agreed over the same period is up by 11% Rightmove has recorded its busiest start to a year for Mortgage In Principle applications, evidence of buyer intent. However, despite the promising start to 2025 there are uncertainties ahead, including the pace and number of interest rate drops and the impact of the stamp duty deadline on 31st March Mortgage rates remain sticky, blocking many buyers from significant affordability improvements: Rightmove’s weekly mortgage tracker shows that the average five-year fixed mortgage rate is now 4.75% compared with 4.78% at this time last year.
?Source: Rightmove House Price Index
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RENT IN ADVANCE LIMITED AS RENTERS’ RIGHTS BILL HEADS TO HOUSE OF LORDS
The Renters’ Rights Bill completed its passage through the House of Commons on Tuesday with amendments including a limit on how much rent a landlord can request in advance. The government said that millions of renters would “reap the rewards of greater security in their homes” as the legislation had its report and third reading on 14 January. A total of 440 MPs voted to advance the bill on Tuesday night, with 111 voting against. It now heads to the House of Lords and is expected to come into force this summer. Housing minister Matthew Pennycook set out new amendments to the bill, which has already pledged to abolish Section 21 ‘no-fault’ evictions and extend the Decent Homes Standard and Awaab’s Law to the private rented sector. The government’s new changes include limits on how much rent a landlord can request upfront alongside a security deposit of five or six weeks’ rent. A new clause will limit the amount of rent that a landlord can acquire to a maximum of one month. If a landlord or letting agent invites or encourages such a payment, they could face local authority enforcement action and a fine of up to ￡5,000.
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MARKETS IN NORTHERN ENGLAND HAVE THE BEST PROSPECTS FOR PRICE GROWTH IN 2025
The markets with the best prospects for 2025 in England are led by Newcastle, closely followed by Leeds, Stoke-on-Trent, Wigan and Carlisle. Housing affordability typically sits below the national average level, creating headroom for price rises provided local economies grow and create jobs. House prices are rising between 2% and 5% across these areas, with prices in Wigan already rising at 5% a year. The areas with the lowest rankings for 2025 are found in inner London and across Southern England. This is primarily a function of higher property prices, as these markets continue to adjust to the impact of higher mortgage rates through longer sales times and greater asking price reductions. Central, South West, North West and West London sit at the bottom of the rankings, due to longer sales times and average house prices over ￡635,000. This is more than double the UK average and higher than the London average price (￡535,000).