Forecasts for UK house price growth in 2025 have been cut by Savills and Rightmove, reflecting weak buyer activity and rising property supply. Savills revised its growth prediction from 4% to 1%, while Rightmove lowered its estimate from 4% to 2%. Real-term house prices are declining as inflation surpasses nominal growth. Increased supply, with stock levels at a decade-high, has pressured sellers to lower prices. Factors such as geopolitical uncertainty and anticipated tax rises are further complicating the market dynamics.
"Interest rates have fallen as expected, giving buyers more financial capacity, but a lot has changed in the past six months. The prospect of future tax rises, particularly in the autumn budget, is likely to weigh heavily-especially at the top end of the market."
"More new sellers are conscious of this and are responding to the high-supply market with stand-out pricing to entice buyers."
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