As 2024 comes to a close, Aitchison Raffety’s Valuation team reflects on the trends that shaped the property market this year and shares insights into what 2025 may bring:
Residential
- Increased Sales Completions: The residential market is set to finish the year with 1.1 million sales completions, a 10% increase from 2023 (Zoopla).
- Houses in Multiple Occupation (HMOs): HMOs have continued to grow to be a popular investment asset class in the UK due to higher rental yields and growing tenants demand, which is likely to continue in to 2025.
- Renters Right Bill: Anticipated to come into effect in late Spring, landlords are awaiting what the changes will mean for their investments, which include the end to S.21 notices and a limit to annual rent increases.
- Market Predictions: Looking ahead, house prices are expected to increase by 2.5% in 2025, with sales completions predicted to rise to 1.5 million (Zoopla), keeping our Valuers extra busy!
Commercial
- Flexible working – the shift to hybrid working has continued, driving demand for flexible and co-working office spaces. Tenants are looking for space that offers quality shared space and end of trip facilities.
- Value-Add Opportunities – Secondary offices with potential for residential conversion, or large retail assets that can be repurposed, offer investors opportunities to enhance value.
- Retail recovery – after the shift to online shopping during the Covid-19 pandemic, consumers are increasingly returning to physical stores, reflecting a strengthening in the retail sector as an investment class.
- Sustainability – Investors and tenants are prioritising environmentally friendly and energy efficient buildings. ESG will continue to remain a priority in 2025 as EPC regulations tighten further and fines for EPC non-compliance come in to force.
Get in touch
Please don’t hesitate to get in touch with our Valuation team to discuss how we can assist you in the year ahead.
From all of us, we wish our valued clients and contacts a very Merry Christmas and a prosperous New Year!
Author: Michelle Campbell, Head of Valuation