With the residential market expected to strengthen in 2025, conditions are still set to remain challenging for renters1.
The gap between supply of rental properties and tenant demand is likely to keep widening. In the three months to October 2024, tenant demand rose by 19% but the number of landlords putting a property up for rent decreased by 29%. This chasm could push rental prices higher.
For those looking to buy, despite some improving conditions, affordability is likely to remain a challenge for many. Although further reductions to Bank Rate are a possibility, many homeowners with older fixed-rate deals ending, face refinancing at higher rates. However, with wages likely to strengthen, inflation tempering and lenders introducing some competitive products, your property dreams could become a reality in 2025. We can help you navigate changing market conditions.
1RICS, 2024
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.