Beverley Property Market: Why 2025 is Set to Be a Strong Year
The UK housing market has always been subject to government policy announcements,
outside forces of economics, and consumer confidence fluctuations.
After a turbulent 2024, there is evidence that 2025 will provide more stability and growth—particularly in areas such as Beverley, where affordability, high demand, and improved financial situations are coming together to create a helpful background for sellers and buyers alike.
Easing Uncertainty and Growing Confidence
Following a year of unstable interest rates, a sluggish economy, and policy overhauls,
confidence is returning to housing. High interest rates and speculation over the new
Government’s taxation policy created much volatility that infiltrated the property market in 2024. However, with that ‘budget’ firmly in our rear view mirror, market forces are
becoming more predictable. The housing market is sensitive to volatility, and so this
certainty breeds higher confidence in buyers and sellers alike.
While the increase in National Insurance rates may slightly reduce hiring, this is more likely to affect lower wage roles, where individuals are more likely to rent privately rather than buy their own homes. The broader housing market is unlikely to see major effects, as demand remains strong and house prices are shaped by wider economic factors beyond changes in lower wage job numbers.
The expectation of diminishing mortgage rates in 2025 is a significant boost to this
confidence. The year that just elapsed was one of volatility, in which rates failed to decline as forecasted. There is cautious optimism today that mortgage rates for buyers with decent deposits will stabilise at approximately 3% to 3.5% towards the year's end (you can get 4.1% with the Yorkshire Building Society today with a 60% loan to value mortgage). Even small reductions in the price of borrowing in the past have been found to profoundly impact transaction volumes, making them a primary driver of property market performance.
Stamp Duty and Market Stimulus
Another key driver of market behaviour is the stamp duty policy. The reintroduction of the zero-rate band to £125,000 (from £250,000) in April in England caused a short-term rush to make home purchases in advance in Q4 2024 (as seen in uplift in mortgage approvals, with November 2024 statistics recording a significant jump over the same November in 2023).
All of that aside, patterns of history indicate that a change in stamp duty has a short-term
impact upwards, a slight drop in transactions immediately afterwards, after which demand stabilises when buyers adjust to new situations.
The Supply and Demand Imbalance of the Property Market
One of the most fundamental drivers of house prices across the UK is the persistent supply and demand imbalance. The UK's population grows predominantly through legal net migration, adding approximately one million per annum. House construction, however, has consistently fallen short of this demand over the last three decades. This scarcity keeps house prices up and keeps rents rising.
Beverley, like many towns, benefits from this dynamic. The town is attractive to home
shoppers looking for more affordable homes than in cities, but supply is constricted. The
constricted supply of homes for sale keeps buyers competing, helping to maintain house prices even in the face of broader economic headwinds.
The Resilience of House Prices
Despite periods of stagnation in the economy, house prices in most parts of the country
have been resilient. The residential market is different to commercial property in that it is
just a small percentage of housing stock that is on the market at any one time, and most
homeowners are insulated from short-term price volatility. This has the effect of keeping
overall price levels on an even keel, even when the economy is in poor condition.
Another factor supporting house prices is the long-held perception of property as a secure investment option. Compared to other investments that can be highly volatile, bricks and mortar have always provided a solid return, making home ownership a highly attractive option for homeowners and investors alike.
The Supply and Demand of the Beverley Property Market
Beverley remains a highly desired place to buy for those in need of decent schooling,
transport links, relatively affordable housing, and easy access to a mixture of rural and
urban amenities. The transport network is also a plus, particularly for those wanting to
move in from more expensive areas. Chatting with my fellow estate agents in Beverley,
many, like myself, report regular interest in homes from local Beverley residents as well as those moving in from more distant towns and cities. The affordability combined with
demand means that the market is likely to be robust in 2025, even when national trends
fluctuate.
As mentioned earlier, both demand and supply play a crucial role in the property market,
but supply is often the bigger driver of long-term trends. With that in mind, it’s worth taking
a closer look at what’s happening locally to understand how housing availability (supply) is shaping market conditions.
The number of homes for sale in Beverley (HU17) has increased in the last 3 years. In January 2025, there were 786 properties for sale in the Beverley area, compared to 293 in January 2022