The housing market is off to a strong start in 2025, with average asking prices reaching £366,189 in January – a 1.8% increase compared to last year. While the market shows signs of growth, nav- igating asking prices can feel overwhelming, especially with rising competition among
buyers and sellers. Here’s how you can approach it confidently and make informed decisions.
Understand Market Trends
It’s essential to know what’s happening in the market before making a move. January saw the largest price jump at the start of the year since 2020, driven by a record number of sellers entering the market. This means more choices for buyers, but it also means sellers must work harder to stand out.
Be Realistic as a Buyer
If you are a buyer, it’s important to recognise that asking prices are often flexible. With affordability constraints still shaping the market, sellers may be open to offers slightly below their asking price. Focus on properties within your budget and explore areas where prices are more competitive.
Present Your Home Strategically as a Seller
If you’re selling, ensure your property stands out. Buyers now have more choices than they’ve had since 2015, so presentation and a realistic asking price are key. Ensure your home is decluttered and styled with appeal to a broad audience. Highlight key features and consider virtual tours to attract online buyers. Finally, set a realistic asking price based on market trends and be open to negotiation for the best outcome.
Focus on Affordability
Affordability remains a crucial factor in today’s housing market. Mortgage rates can fluctuate, directly impacting what buyers can afford. For buyers, getting pre-approved for a mortgage is essential to understanding your budget and acting confidently when you find the right property. Sellers should also keep affordability in mind, as changing rates influence buyer behaviour and what they’re willing, or able, to pay.
Stay Informed and Flexible
The housing market is dynamic, so staying informed about trends and being flexible in your approach can give you an advantage. For more information and to discuss your options, get in contact today.
If you’d like to discuss the options available to you, contact your adviser
If it isn’t all-encompassing, it simply isn’t Compass
Securing a mortgage is only part of the story. What’s just as important is the experience you have along the way.
Related news
Autumn Budget Reaction: How Does it Impact You?
The Chancellor has now delivered the Autumn Budget, and while many of the headline measures were widely anticipated, you might understandably be asking “What does all this mean for my mortgage?” Below is a breakdown of the key themes and what they could mean for your finances over the coming months.
Preparing for the 2025 Autumn Budget
The Autumn Budget is always a key moment for homeowners, investors and savers. This year’s announcement on 26th November is expected to be no different. The Chancellor will set out the government’s plans for tax, borrowing and spending for the year ahead.
How Spending Choices Affect Your Mortgage Options
When it comes to managing your finances, your credit score plays a key role – especially if you’re thinking about remortgaging. Many homeowners don’t realise that everyday spending and borrowing decisions can influence the way lenders view your financial health.