Property Market Predictions for 2025

Lloyd Davies, Trustee of the Conveyancing Foundation and industry leader, shares his insights and predictions for 2025.

From housing market trends to the growing role of technology in conveyancing, Lloyd discusses the challenges and opportunities ahead for the industry. With over 30 years of experience, his perspective highlights both the hurdles to overcome and the positives to embrace as we navigate the year ahead.

Housing Market Projections:

  • Interest rates will remain largely static at 4.75%, with the BoE still capitalising on high interest rates based on the inflation at roughly 3% in 2025.
  • House price growth will return to provide good returns again at approximately 5-6% next year.
  • Fixed mortgages are set to reduce to 4%, while properties available for sale are at a 10 year high.
  • Transaction volumes are predicted to increase by 150,000 this year to 1.15 million in 2025, with a steady market and the rush to beat FTB stamp duty relief contributing factors.

Conveyancing Personnel:

Recruiting and maintaining the best professional team will continue to be difficult for business leaders with the number of conveyancing professionals remaining largely static.  Continued poor training and qualification provision across the industry, coupled with overzealous enforcement action from Regulators, will continue to limit the number of qualified professionals in the conveyancing industry.

The Workplace:

Legal practices will be under pressure to provide increasing flexibility in terms of hybrid working and working hours for their staff, as well as increased wages due to labour shortages and increased potential new business opportunities.  New NI rates will also impact the cost of labour.

Increasing Conveyancing Fees:

The cost of labour and ever-increasing conveyancer responsibilities per transaction will inevitably lead to a further increase in legal fees this year.  Referrers of legal services will need to be mindful of offering the highest fees for their lawyers to secure the best service.

Artificial Intelligence and IT:

We will continue to see inroads in technology with the adoption of AI products starting to make a real impact by 2026.  Legal practices will continue to make the most of technology to ensure that they protect their clients and adhere to AML regulations.

Happy New Year

Overall, the forecast for 2025 looks promising, so long as Stamer cools his jets a little and Trump doesn’t go too wild!!  Have a great 2025 everyone!!

January 3, 2025