What’s in Store for the Residential Property Market in 2025?
Mainstream house price growth to accelerate
The residential property market in Preston, Lancashire, and the Northwest is set to see positive growth in 2025, with house prices forecast to rise by an average of 4% across the UK. Improved buyer confidence, driven by decreased mortgage rates, has already begun to influence moderate growth. For those searching for houses for sale in Preston or houses for sale in the Northwest, this marks a promising opportunity as the market strengthens.
As commuting trends shift, residential properties in Preston are expected to attract buyers seeking proximity to key employment hubs. These trends align with the Northwest’s appeal as a region offering a balance of affordability and accessibility, making it an attractive destination for families and professionals alike.
Prime Housing Market to Lag Behind
While mainstream markets across Preston and the Northwest are expected to recover steadily, the prime housing sector may face slower growth due to factors such as stamp duty surcharges and taxation changes. However, demand for prime residential properties in Preston and surrounding regions could still see moderate growth as families prioritise affordability and access to quality schooling outside of London.
Rental Market Pressures to Persist
High demand and limited supply will continue to drive rental growth in Lancashire and the Northwest. Rents are forecast to rise by 4% nationally in 2025, surpassing income growth. For those considering houses for sale in Preston, the combination of rising rents and mortgage affordability may encourage a shift from renting to buying.
While renters in Preston may feel stretched, more affordable markets in the North, including Lancashire, could see relief as slower growth balances affordability concerns. This presents opportunities for Preston estate agents to assist both landlords and prospective buyers in navigating these changing dynamics.
Recovery in Buyer Activity
Buyer activity in Preston and the Northwest is expected to gain momentum in 2025, but the recovery will vary across buyer groups. First-time buyers seeking houses for sale in Preston may act quickly to benefit from remaining stamp duty concessions, while mortgaged home movers who previously held off due to high mortgage rates are likely to re-enter the market.
Cash buyers, who have dominated transactions over the past two years, may see their market share decline as mortgaged owner-occupiers regain prominence. This shift highlights the evolving landscape for Preston estate agents, who can support a wide range of buyers and sellers in a competitive market.
As the property market in Preston, Lancashire, and the Northwest continues to evolve, residential properties in Preston remain a key focus for buyers and investors alike. With opportunities emerging across both sales and rentals, the expertise of Preston estate agents will be instrumental in helping clients make informed decisions. Whether it’s identifying houses for sale in Preston or guiding buyers in the Northwest, 2025 promises to be a year of growth and opportunity.
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