Property Market News: Strong Momentum Continues Despite Headline Noise
As we head further into 2025, it's time to look back at what’s been happening in the local property market and what we can expect in the months ahead. While the headlines might be gearing up for another round of doom-and-gloom predictions, the reality on the ground tells quite a different story.
A Resilient Market Despite Stamp Duty Changes
There’s no getting around it—whatever the wider world is doing, our regional property market continues to move forward with surprising strength. Even with the Stamp Duty reversion at the end of March, activity remains solid.
Now, let’s address the inevitable: April’s completion numbers were, as expected, lower than March’s (which saw a pre-deadline rush) and also down compared to April last year. When these figures are made public, we’re likely to see attention-grabbing headlines like:
“Housing market slump follows Stamp Duty changes”
“Buyers vanish post-incentive”
But these don’t tell the full story.
Looking Beyond the Monthly Headlines
If we take a step back and look at the bigger picture, the outlook is far more positive. Averaging completions across the last three months, we’re still tracking 33% ahead of the same period last year, and at Manning Stainton, the number of sales currently agreed and progressing is 5% higher than this time last year.
So where’s this ongoing momentum coming from?
First-Time Buyers Return—Backed by the Bank of Mum and Dad
One of the most interesting trends we’ve seen recently is the strong return of first-time buyers (FTBs) to the market. Their reappearance is having a real impact—not just in our region but nationally.
This week’s headlines highlighted just how significant the role of the "Bank of Mum and Dad" has become, noting that it now supports nearly half of all FTBs, making it one of the UK’s largest ‘lenders’. The figures are eye-opening:
Nearly £40 billion has been gifted over the past four years.
In 2024 alone, around £9.6 billion was passed on to help children onto the property ladder.
With continued government focus on inheritance tax (IHT) and parents looking for ways to pass wealth on efficiently, this trend seems set to continue.
So far in 2025, the number of first-time buyer transactions is 11% higher year-to-date compared to 2024. Add to this the fact that lenders are offering increasingly competitive rates, and it's easy to see why this part of the market is thriving.
Why First-Time Buyers Matter
The influence of FTBs goes beyond just one part of the market:
- They boost demand in the lower price bands, which has a ripple effect upwards, helping keep the whole market fluid.
- They contribute more to the wider economy, as most are furnishing their first homes from scratch and often take on improvement works.
- They’re ideal buyers for older, under-loved properties, especially before starting families—this drives value and sparks further spending and renovation.
Looking Ahead: Summer Confidence and Falling Rates
As of writing (7th May), all eyes are on the Bank of England, with a potential rate cut expected tomorrow. Most analysts are predicting a drop to 4.25%, and regardless of the outcome, mortgage rates have already been falling in anticipation.
We’re now seeing major lenders offer deals below 4%—something we haven’t seen since September 2024. That’s great news for affordability across the board and further supports ongoing market confidence.
Market Outlook
In short, we’re staying the course with our earlier predictions. Activity remains strong, pricing momentum is holding up well, and first-time buyer engagement continues to underpin the market. All signs point to continued growth, with property prices still expected to rise by 5% to 7% over the course of 2025.
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