Barnet & Whetstone Property Market Update – January 2025
By Michael Holloway – Partner Hunters Estate Agents
2025 Housing Market Predictions
Will interest rates fall? Will landlords continue to sell?
We look at some of the predictions for the 2025 property market.
Barnet and Whetstone Property Market Predictions
Property market predictions are notoriously difficult but over the years we’ve been right more than we’ve been wrong.
With a busy final few months of 2024, the January market had a good foundation and the North London market has started well. This local trend is mirrored nationally, with the recent stats from Rightmove’s House Price Index stating that the average price of property coming to market has risen by 1.7%, the largest jump in prices at the start of the year since 2020.
With a record number of early-bird sellers coming to market since Boxing Day, giving buyers the highest level of choice at the start of a year since 2015, and 11% ahead of the same start-of-the-year period last year.
The number of buyers contacting agents about properties for sale since Boxing Day is 9% ahead of last year, and the number of sales being agreed over the same period is up by 11%.
By any means, a strong start to the year.
Prediction – Our prediction for the local North London housing market for 2025 is airing on the side of caution with an increase of 4% – 5%.
The Rental Market
Prospective landlords have been impacted by rising mortgage rates and higher stamp duty costs. Zoopla reported that many landlords are selling their properties, particularly in higher-value areas of London. In the WC postcodes, 32 per cent of all homes for sale having been previously rented in the past four years, compared to a national average of 12%.
It is anticipated that the trend of landlord sales, especially in the more affluent areas of London, will continue to rise in 2025.
The forthcoming and controversial Renters’ Rights Bill, expected to become law this year, will introduce significant changes, including a ban on “no-fault” evictions and a requirement for landlords to enhance the energy efficiency of rental properties. However, according to predictions from the National Residential Landlords Association, stricter tax regulations could lead to a reduction in rental supply as more landlords exit the market.
In December, Rightmove reported that the average available rental property was receiving 11 enquiries, up from 6 in 2019. On a more positive note, rental prices for newly let properties in the UK increased by 2.6% year-on-year to November, the lowest annual growth since November 2020 (2.4%).
Prediction – The prediction for the 2025 rental market, is that rental price growth is forecast to reach 3.7% across the UK, with a more modest 1.5% increase in London, where tenants have already experienced substantial rent increases.
Mortgage Interest Rates
Mortgages are expected to play a pivotal role in supporting the property market in 2025. In 2024, interest rates gradually decreased, with two-year fixed rates dropping from 5.93% to 5.48%, and five-year rates from 5.55% to 5.25%.
After the October 30 budget, the decline in interest rates slowed as concerns over potential inflation led the Bank of England (BoE) to maintain its base rate at 4.75% in December. However, the recent drop in inflation has rekindled optimism around a potential rate cut, with final decisions to be made by the BoE’s Monetary Policy Committee on February 6.
Economists are increasingly confident about the prospect of rate reductions. A recent survey of 51 economists conducted by The Times predicts at least four rate cuts in 2025, an improvement from earlier forecasts of just two. Such a move could provide a significant boost to the market, especially in the southeast, where housing prices tend to be higher.
Prediction – The mortgage interest rate prediction for 2025, is that new rates will average just above 4 per cent by the end of 2025 (with a 25 deposit).
A selection of Recently Listed Homes From Hunters
Here are just a few of our most recently listed properties for sale from our Barnet and Whetstone offices –
House for Sale in London – £1,400,000
House for Sale in New Barnet – Offers Over £800,000
Flat for Sale in New Barnet – £550,000
Flat for Sale in Barnet – Offers Over £400,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
See our ‘Recently Sold Properties’.
Mortgages
If you are considering a move, It is more important than ever to shop around for the best deals and remember that not all deals are advertised, some of the best deals are only available from mortgage brokers.
Contact mortgage advisors Simpson Bowers, a firm of local independent financial advisors on 020 8275 8555 www.simpsonbowers.co.uk I can highly recommend them as they have helped many of our clients, including myself.
Ready to Move?
Please feel free to call me at our Barnet office or Elliot at Whetstone if you are considering selling your home in the Barnet and Whetstone areas, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
You can also use our Instant Online Valuation tool.
Good luck with your house hunting.
Michael Holloway – Hunters
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