MARKET UPDATE
Promising start to 2025 for the Property Market but challenges persist
As we welcome 2025, Lambert & Foster report a record number of sellers entering the property market, signalling a strong start to the year. According to Rightmove, the average property price rose by 1.7% this month, an increase of £5,992, bringing the average asking price to £366,189. This marks the largest January price jump since 2020. Despite this growth, asking prices remain nearly £9,000 below the peak recorded in May 2024, reflecting the ongoing challenges of buyer affordability.
Boxing Day saw a repeat of its seasonal surge in new seller activity, with the number of properties coming to market 11% higher than the same period last year. This trend has provided buyers with the greatest level of choice at the start of a year since 2015. Encouragingly, buyer interest is also on the rise, with a 9% increase in enquiries and an 11% uplift in sales agreed compared to early 2024. Rightmove reports a record-breaking start to the year for Mortgage In Principle applications, further evidence of robust buyer intent.
However, challenges persist. Mortgage rates remain relatively high, with the average five-year fixed rate at 4.75%, only marginally lower than 4.78% last year. Additionally, the looming stamp duty deadline on March 31st and uncertainties around the pace of interest rate reductions may impact the market’s momentum.
Freddy Cunningham, Residential Sales Manager for Lambert & Foster’s Sussex office, advises sellers to adopt realistic pricing strategies to remain competitive.
“While the market is showing promise, high levels of stock mean buyers have plenty of options. Overpriced properties risk being overlooked in favour of better-priced alternatives,” he cautions.
With the highest stock levels in a decade and encouraging buyer activity, 2025 is shaping up to be a dynamic year for the property market, but careful navigation will be essential amidst evolving economic conditions.
If you would like advice about marketing your property or wish to register as a buyer please contact your local Lambert & Foster office for a no obligation discussion.
Sussex office – 01435 873999 or email sussex@lambertandfoster.co.uk
Cranbrook office – 01580 712 888 or email cranbrook@lambertandfoster.co.uk
Paddock Wood office – 01892 832 325 or email paddockwood@lambertandfoster.co.uk
