Private Rent and House Price data

“Although a second consecutive rise in inflation means we are unlikely to see the Bank of England reduce the base rate tomorrow, the market’s anticipation of further cuts and lower mortgage rates next year offers some optimism for potential homebuyers.

“The housing market has had a busy finish to 2024, with many prospective buyers looking to push on and get deals over the line before the new year. Figures from HMRC show that transactions in October were up by 21% on a year ago, while Rightmove reported that the number of sales being agreed is up by nearly a quarter compared with the same period in 2023. For all of the jitters in the build up to the Budget, the reality is that people need homes in which to live and we don’t have enough to meet that demand. While we keep a watchful eye on Labour’s plan to build, we should expect to see house prices continue to rise to new highs in 2025.

“While the prospect of lower mortgage rates will be welcome for many aspiring homebuyers, lenders must also grasp the opportunity to deliver better support to those who are currently underserved, such as buyers with smaller deposits or who have experienced temporary credit issues. We cannot allow homeownership to be out of reach for those who are more than able to repay a mortgage, but who need a more understanding approach from lenders.”