(Recently listed – North Leigh Lane, Wimborne – Guide Price £1,200,000 – Click image to view)
2025 Housing Market Predictions – For Ferndown, Dorset and Across the UK
The UK housing market is poised for a dynamic year in 2025, and Ferndown, with its appeal as a family-friendly and retirement destination, is no exception. From changing mortgage rates to shifting trends in the rental market, we examine what lies ahead for buyers, sellers, and renters in this charming Dorset town and the UK as a whole.
Mortgage Interest Rates: Positive Signs for Buyers
Mortgage rates are expected to ease in 2025, offering relief to prospective buyers. Rates saw a modest decline in 2024, with two-year fixed deals dropping to 5.48% and five-year deals to 5.25%. Predictions suggest rates will average just above 4% by the end of the year (for buyers with a £25k deposit).
For buyers in Ferndown, where spacious homes and a peaceful lifestyle are key attractions, lower rates could help stimulate activity in the property market. Families seeking homes in the area may find 2025 to be an opportune time to secure a mortgage at competitive rates.
Stamp Duty Changes: A Market Disruptor
The new stamp duty thresholds taking effect on April 1, 2025, will have a notable impact. First-time buyers will see the exemption threshold drop to £300,000, while for other buyers, it decreases to £125,000.
In Ferndown, where many properties are priced above these limits, the adjustments are expected to create a rush to complete purchases before the March 31 deadline. However, as experts caution, the short-term surge in demand may inflate prices, negating some of the savings. For buyers looking beyond the deadline, the market is likely to stabilize later in the year.
First-Time Buyers: An Emerging Opportunity
First-time buyers are set to play a significant role in 2025, particularly as landlord sales provide new opportunities. Nationally, 35% of homes sold by landlords in 2024 were purchased by first-time buyers, up from 16% in 2016.
Ferndown, with its mix of family homes and entry-level properties, remains an attractive option for first-time buyers. Many will continue to benefit from financial support from the Bank of Mum and Dad, which is expected to contribute a record £10 billion in 2025, helping young buyers achieve their homeownership goals.
The Prime Market: Stability in Dorset
Dorset’s prime property market, especially homes in the £1.5 to £2 million range, is expected to remain resilient. The area’s excellent amenities, proximity to the New Forest, and appeal to both local and relocating buyers ensure continued demand for high-quality homes.
While changes in taxation and non-dom status have impacted the super-prime market in London and parts of the South East, Dorset’s housing market benefits from its balance of luxury and affordability, attracting buyers seeking value in a beautiful, peaceful setting.
Rental Market: Expected to Grow
With existing and potential landlords being hit by higher mortgage interest rates and additional stamp duty, the demand for rental property in Ferndown and across Dorset remains strong.
The rental market does face challenges, as landlord sales reduce the availability of properties nationally, 32% of homes sold in affluent areas of London and 12% across the UK were previously rented, a trend likely to continue in 2025.
The anticipated introduction of the Renters’ Rights Bill, with measures like the ban on “no-fault” evictions and stricter energy efficiency standards, may discourage some landlords from staying in the market.
However, with demand for rental properties being so strong, and rental yields offering an excellent ROI, the expectation is that the rental sector will grow in 2025 with predicted rent increases of 3.7 per cent across the UK,
Ferndown’s Outlook for 2025
Ferndown’s property market is set to reflect the broader trends shaping the UK in 2025. Lower mortgage rates and increased opportunities for first-time buyers offer promise, while stamp duty changes and rental market pressures create challenges.
At Edwards Estate Agents in Ferndown, we pride ourselves on helping clients navigate Ferndown’s evolving property landscape. Whether you’re buying, selling, or renting, our local expertise ensures you’re well-prepared to achieve your property goals in 2025.
Some of the fantastic properties listed for sale in Ferndown and across Dorset this month
House for Sale in Ferndown – Offers Over £850,000
House for Sale in Wimborne – Guide Price £850,000
House for Sale in Ferndown – Guide Price £730,000
House for Sale in Wimborne – Guide Price £495,000
House for Sale in Verwood – Guide Price £265,000
To see the very latest homes to come to the market, click ‘New to market homes’, this lists all of our very latest properties for sale.
Or see more ‘Recently Sold Properties’.
Ready for a Move in 2025?
If you would like some help or advice, please feel free to give me a call at our Ferndown Office anytime.
You can use our Instant Online Valuation or book a Face to Face Valuation.
Until next month, happy house hunting.
Grant Brooks – Edwards Estate Agents
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