Property Market Overview April 2025

The UK property market in 2025 is showing signs of cautious optimism, despite ongoing economic pressures. House prices are predicted to grow by 2.5% this year, following a period of stagnation during 2023 and 2024.
Experts suggest that regional differences will continue, with the North West and Midlands expected to outperform London and the South East.
Mortgage interest rates are currently averaging around 4.5%, with expectations of slight reductions towards the end of the year
if inflation continues to ease.

The Bank of England base rate remains at 4.25% as of April 2025, with a potential cut anticipated in Q4 depending on economic indicators.

Rental demand remains robust, especially in major cities like Manchester, Birmingham, and Edinburgh, where shortages of quality rental
stock are pushing rents up by an average of 5% annually. Build-to-rent developments are continuing to expand to meet this demand.

First-time buyers are facing ongoing challenges due to affordability constraints, but new government incentives launched in early 2025,
such as the “First Home Boost” scheme, aim to help younger buyers onto the property ladder.