We're always keen to share valuable insights into the UK property market with our clients and investors. Recently, Savills released their predictions for the year ahead, and we thought it was worth highlighting some key takeaways.
Navigating the Cycle
Savills accurately predicted that 2024 would mark the bottom of the current real estate cycle. Despite the stability brought by the new government, the recent Budget, with its focus on high taxes and limited growth, has tempered some of the initial optimism.
However, there's good news on the horizon. Savills anticipates gradual improvements across the market in 2025, citing strong fundamentals such as limited supply and rising demand across residential, commercial, and rural sectors. This bodes well for both rental income and capital appreciation.
Interest Rate Cuts & Market Recovery
While acknowledging ongoing geopolitical instability and risks, Savills remains optimistic about the next stage of the real estate cycle. They expect further interest rate cuts in 2025, which should improve project viability and boost property appeal for buyers. Increased funding availability at lower rates is likely to bring a wider range of buyers back to the market, further fuelling demand.
Upward Price Trends
The combination of increased buyer activity and a continued shortage of prime real estate is already leading to upward price trends in the market. This positive momentum is expected to continue throughout 2025, creating attractive opportunities for investors and homeowners alike.
Brentor's Perspective
At Brentor, we share Savills' optimism for the UK property market in 2025. We believe that strategic investment in well-located, high-quality properties will continue to yield strong returns.
Our focus on prime locations in Southern England, coupled with our commitment to delivering exceptional developments, aligns perfectly with the positive market trends outlined by Savills.
Interested in reading the full report?
We encourage you to read the full Savills report for a more in-depth analysis and contact us to discuss your investment goals and how we can help you navigate the market successfully.
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