It’s been a roller coaster of a year for the property market, especially if you’re a developer or a landlord. If you’re thinking of investing into property, there are opportunities if you know where to look. We share the latest property market insights and what to expect in 2025.

CAPITAL GAINS TAX

An expected increase to Capital Gains Tax (CGT) was one of the most feared changes in the Budget, but thankfully, this hasn’t happened. It’s hoped that by maintaining current CGT rates for selling buy-to-let and second properties this will prevent a mass sell off by landlords.

STAMP DUTY FOR SECOND HOMES

Although the latest Budget has meant Capital Gains Tax has stayed the same, Stamp Duty has increased significantly for the purchase of second properties. On 30 October 2024, the rate increased from 3% to 5%. Although landlords could be put off from adding more properties to their portfolios, it’s thought that many will look for investment opportunities.

Refurbishing current rental properties could result in higher rental income at a time when supply is likely to drop and rents increase. There may also be refinancing options for your rental property. Talk to us if you’re a landlord so we can explore your options.

HOME MOVERS MAY RUSH TO SELL

In April 2025, the Stamp Duty threshold for main residences will be lowered from the current £250,000 to £125,000 (£300,000 for first-time buyers). As a result, home movers will have to pay 2% Stamp Duty from £125,001 to £250,000, 5% from £250,001 to £925,000, and 10% from £925,001 to £1.5 million. These rates only apply to properties that are people’s main home.

A housing market rush is expected for those wishing to avoid paying Stamp Duty above the new thresholds. If you are looking to sell your home quickly without an estate agent, please speak to us.

INTEREST RATE PREDICTIONS

According to economists at Goldman Sachs, there is a prediction that the Bank of England will reduce interest rates to 2.75% by autumn 2025. On 7 November 2024, the previous interest rate of 5% was cut to 4.75%.

When it comes to buy-to-lets, average mortgage rates are currently around 5.52% for a 2-year fixed rate and 5.67% for a 5-year fixed rate (Moneyfacts).

RENTERS (REFORM) BILL

The Renters (Reform) Bill has been a hot topic for the past few years. The government’s original aim was to reform the rental market, such as ending section 21 ‘no fault’ eviction notices and creating a mandatory landlord register. At the time of writing, the Bill is still being scrutinised by MPs and has not yet been ratified and made into law.

SELL YOUR PROPERTY TO US

At RJJ Developments, we have the resources and expertise to find profitable property investment opportunities. If you need someone to buy your property, why not talk to us? Our confidential and discrete approach gives sellers a ‘no fuss’ approach to property sales.

Depending on your property and location, we might be able to buy your home without involving an estate agent. We regularly offer a way out to those who need to sell their rental property or home. So, if you are looking for a fast sale, let’s discuss your options.

If you’re interested in selling or investing in property, please get in touch.to see how we can help.

Thank you for reading our latest blog, Property Market Insights for the Year Ahead.

RJJ Development