Patron Perspectives 2024/25: What is Driving the UK Property Housing Market?

This blog series brings together sector reflections from our Patron network – leaders who play an active role in shaping Kingston’s economy and supporting its business community.

Each piece was first published in our 2024/25 Impact Report, where we asked: what’s changed over the past year – and what’s likely to shape what’s next?

The result is a collection of expert, actionable editorials. Throughout this series you’ll find perspectives on housing, education, digital experience professional services and more, reflecting the challenges and opportunities shaping Kingston’s economy.

Property demand has eased slightly, but mortgage rates are coming down. What does it mean for you? Whether you’re a first-time buyer, seasoned investor, or existing homeowner hoping to move, Monica Bradley, Managing Director of award-winning mortgage broker MB Associates, breaks down the latest market trends.

MORE BUYERS THAN PROPERTIES

Property demand has seen notable shifts throughout the past year. Zoopla reports that buyer demand is currently 1% higher than the same period last year. While this increase may seem modest, it follows a period of volatility impacted by changing government policies, seasonal factors, and economic uncertainty.
According to the Land Registry, house prices rose by 5.4% in 2024. Its House Price Index is the most reliable source of house price trends as it’s based on property sales rather than asking prices. The increase in the stamp duty threshold in April triggered a rush of buyers eager to beat the change, briefly pushing demand upwards.
There have been more buyers than properties for several years, but property demand has changed in the past year. The availability of properties for sale is reported to be 11% higher than a year ago, increasing buyers’ options and potentially slowing down price growth. This also means that prospective buyers are more likely to try to negotiate on house prices.

TRENDS IN PROPERTY PRICES

According to Rightmove, property prices grew by just 1.4% year-on-year in February, lagging behind the inflation rate of 3%. Halifax’s index revealed a slight monthly decrease of 0.1% in house prices for February. Property database TwentyCi reports that, in 2024, 38% of UK property listings ended with at least one price reduction before completion, highlighting the pressure on sellers to adjust expectations.
Current predictions estimate UK house price inflation to remain modest, easing towards 1% to 1.5% in the coming months.

REGIONAL VARIATIONS

One of the most interesting elements of the property market is the variation in price growth across regions. According to NerdWallet, London’s property prices have remained mainly flat, reflecting affordability issues and potential oversupply in the capital.
Conversely, more affordable regions such as the North have demonstrated notable growth. Annual price increases of 6.7% in the North East showcase the appeal of these areas, where housing affordability aligns better with wage growth.
Despite signs of resilience in some regions, the market faces considerable challenges. Although mortgage rates are easing, they are still higher than they have been historically, impacting affordability for first-time buyers and those looking to upgrade to larger properties.

SUMMARY

While some lenders have reduced rates in anticipation of base rate cuts, others have paused or withdrawn competitive deals due to rising inflation and funding costs. Additionally, global economic factors, such as trade tensions, contribute to market volatility.
Acting promptly to secure favourable rates is advisable for those considering a mortgage or remortgage, as market conditions can change rapidly. Consulting with an experienced mortgage broker will mean you’ll get bespoke advice to suit your situation.

MB Associates has been providing award-winning mortgage advice to clients across Surrey and beyond for over 20 years. Known for its tailored approach and exceptional client care, the team specialises in helping first-time buyers, home movers, investors and those looking to remortgage. Led by Founder and Managing Director Monica Bradley, MB Associates is built on long-term relationships and a commitment to clarity, transparency and expert guidance—every step of the way. From securing the right mortgage to arranging bespoke financial protection, they’re dedicated to making the process smooth, supportive and personal.

Find out more at mbassociates.net.