UK House Prices Expected to Fall in 2025 After Record High

In December 2024, UK house prices reached a record high of £298,083, a 4.8% increase from the previous year. This growth was driven by decreasing mortgage rates and wage growth surpassing inflation. However, experts predict a modest growth of 0-3% in house prices for the upcoming year, with a potential decline in 2025. Homeowners facing higher refinancing rates may limit the number of properties for sale, while buyer demand is expected to remain stable due to favourable employment conditions. Northern Ireland experienced the highest annual property inflation at 6.8%, whereas Scotland recorded the slowest at 2.8%. Private rents have surged, particularly in London, where average monthly rents exceeded £2,200. The reduction of the stamp duty exemption for first-time buyers, effective from April, is projected to temporarily boost market activity.

Labour Set To Build Fewer Houses Than the Tories, Says OBR

The UK’s Office for Budget Responsibility (OBR) forecasts that the new Labour government will construct fewer houses than the previous Conservative administration. Labour aims to add 1.3 million homes during its term, compared to the 1.6 million built under the Conservatives. Specifically, Labour has set a target of 1.5 million homes for England alone but is projected to achieve only 1.1 million, nearly a third less than its goal. The OBR’s projections do not account for Labour’s promised planning system reforms. Housebuilders emphasize the need for supportive policies to meet housing targets, highlighting the importance of mortgage financing for first-time buyers and the capacity of local government planning departments. The absence of financial support programs, such as the “Help to Buy” scheme, has reduced the industry’s ability to invest in new sites and expand housing supply. Savills projects that only 203,000 new homes will be built annually unless additional incentives are introduced.

Camden Yard to Be Sold Next Year After Funds Dry Up

Camden Yard, a landmark development in Dublin featuring four office blocks and two residential buildings, is slated for sale next year after exhausting its funds. Located 350 meters from St Stephen’s Green on the former Kevin Street campus of the Technological University of Dublin, the project has been stalled since early autumn. Developer Westridge Real Estate, led by Shane Whelan, invested €210 million into the site and construction. However, alternative lender BentallGreenOak (BGO) has appointed Grant Thornton as receiver. Potential buyers, including Hines Ireland, Ardstone, and Marlet, may seek new planning permission focused on apartments, possibly involving the demolition of existing structures. The expected sale price of €50 million would result in significant financial losses for the project’s backers and lenders, including BGO, which faces a hit on its €75 million senior debt. The project suffered from overambition and bad luck, including the fallout from the Russia-Ukraine conflict and the exit of key investors.

Winners and Losers in the Irish Business World for 2024

In 2024, Ireland’s business landscape witnessed significant shifts. The government’s exchequer benefited from the sale of state shares in AIB and Apple’s €13 billion tax and interest settlement following a European Court ruling. Corporations like CRH and private equity firms such as Exponent and New Mountain Capital also had prosperous years, with notable deals including the sale of Mannok to Cimsa and Grant Thornton Ireland’s dramatic buyout. In the property market, Kennedy Wilson profited from selling The Shelbourne Hotel. Conversely, McKillen Jr’s Press Up hospitality group and Johnny Ronan’s Ronan Group Real Estate faced financial difficulties, ending in debt and receivership. The hospitality industry struggled with numerous closures and pressures following increased VAT rates. Rivada Networks faced financial challenges, and Boohoo endured a leadership change amid investor and operational woes. Additionally, the legal consequences of past financial misconduct were highlighted by Brendan Mullin’s imprisonment. As the year closed, anticipation built around potential insider trading investigations set to unfold in 2025.

UK House Price Tracker: Will Property Values Go Up or Down in My Area?

Forecasting house prices in the UK have been inconsistent, especially since mortgage rates increased in 2022. While some economists predicted drastic declines, the market has shown resilience with a recent rebound. Currently, mortgage rates have stabilized around 4%, and estate agents have reported increased sales and active buyers. However, house prices are influenced by hyperlocal factors such as schools and crime rates, causing significant variation across regions. Data from PropCast and the Land Registry reveal a north-south divide since the 2007 financial crisis, with London boroughs experiencing price increases, whereas northern regions like Co Durham and Sunderland have seen declines. Despite nominal prices remaining flat, inflation-adjusted values have fallen, with the average monthly mortgage now constituting 21.3% of income, up from 17% two years ago. Further uncertainty stems from outdated Land Registry data, making current market conditions challenging to assess. Nevertheless, the long-term view suggests property remains a valuable, albeit inflation-prone, investment.

Affordable and Private Homes Coming to West Wittering

West Wittering is set to gain a new housing development, Wittering Place, as developer Dandara begins construction on 70 homes designed to meet the area’s growing demand for a mix of affordable and private housing. The development will feature a range of two-bedroom apartments and three- to four-bedroom houses, catering to first-time buyers, families, and retirees. The project emphasizes sustainability with energy-efficient designs, green spaces, and eco-friendly construction methods. Community-focused amenities, including pedestrian-friendly pathways and playgrounds, are central to the plans, ensuring Wittering Place integrates seamlessly into the local area. Its location near the South Downs National Park adds to the appeal, offering residents access to scenic landscapes and outdoor activities.

While many locals welcome the development for increasing housing supply, others have voiced concerns about potential impacts on traffic and local infrastructure. Dandara has pledged to collaborate with the community to mitigate these concerns and ensure the project benefits existing residents. Construction is expected to be completed by 2026, with the first homes available by late 2025. Wittering Place promises to provide much-needed housing while preserving the charm and character of West Wittering.