After the initial rush by home movers to complete by April, this year has seen drastic changes to Stamp Duty thresholds and more interest rate cuts. We share the latest property market news and predictions for the rest of 2025.

CUT TO BANK OF ENGLAND BASE RATE

In May the Bank of England reduced the base rate of interest from 4.5% to 4.25%. Before the announcement, mortgage lenders had been anticipating this change and were steadily adjusting their lending rates. Major lenders are now offering fixed mortgage rate deals with an interest rate of less than 4%, making mortgages more affordable. Market analysts at Investec predict the Bank of England will reduce interest rates to 3.75% by the end of 2025.

IMPACT OF RECENT STAMP DUTY CHANGES

In April the Stamp Duty thresholds decreased and the 2% band returned for properties valued between £125k and £250k. Zoopla has estimated that “four in five existing homeowners (83%)” will now have to pay Stamp Duty. As a result, 49% of homeowners who purchase property over £250k will now have to pay an extra £2,500 in Stamp Duty. The area with the biggest increase in homebuyers having to pay Stamp Duty is the West Midlands (Zoopla).

HOUSING MARKET UPDATES AND PREDICTIONS 2025

To avoid paying extra Stamp Duty, early 2025 saw a big rush by homeowners keen to complete by spring. In February the number of completed transactions was 10% above 2017-2019 averages (Nationwide) and buyer demand was 1% higher than 2024 (Zoopla). In March, UK house prices increased by 1.6% and the average house price is currently £267,400. House prices are expected to continue increasing through 2025 by an average of 2.5% (Zoopla).

NEW RENTERS RIGHTS BILL

After winning the general election, Labour dropped the previous Renters (Reform) Bill and introduced the Renters Rights Bill. Currently being scrutinised by MPs, the Bill is set to become law this summer. One of the biggest changes being proposed by the Bill is the abolition of Section 21 ‘no fault’ eviction notices. However, to address concerns, the government is looking to give landlords stronger grounds for possession.

HOW TO GENERATE INCOME FROM PROPERTY

Although the housing market is an ever-changing landscape, there are several ways that you can generate regular income from a property investment. Whether you’re a homeowner, landlord, contractor, or an aspiring property investor, it’s important that you partner with someone who has the right expertise and resources. You need to know your numbers because margins are tight and have the right skills on hand to carry out any works.

At RJJ Developments, we have both the knowledge and experience to find profitable opportunities for property investments. Our team use a variety of methods including refurbishing, renting and refinancing. Depending on your situation, property and location, our approach could enable you to enjoy a quick sale or more effective portfolio management.

If you’re interested in generating an income from your property, please get in touch. to see how we can help.

Thank you for reading our latest blog, Need to Sell Property Market News: June 2025.

RJJ Development