Yorkshire housing market forecasts for 2025 by those who know best including 13 of the region’s leading estate agents and property experts

With the political landscape looking more settled and the fallout from the October budget dissipating, I expect to see a more balanced market in 2025, primarily driven by increased buyer confidence and a more stable economic outlook. This will be beneficial for both buyers and sellers, creating an environment where transactions can proceed with greater confidence and transparency, encouraging people to enter the market, whether they be first time buyers or those looking to move up or down the property ladder.

In the latter part of 2024, we experienced a welcome uplift in activity and this sentiment seems set to continue into 2025. I am optimistic that the improvements we have witnessed in the last few months of 2024 will filter through into a more buoyant 2025. Interest rates have (hopefully) topped out and there should be a steady downward trajectory over the next few months, creating a more competitive mortgage market. Buyers and sellers who have put off moving by adopting a wait-and-see approach, may now start to consider that the time is right to review their options and adopt a more motivated approach to ‘hatch a plan’ to move.

Overall, my outlook for 2025 is quietly optimistic with demand moving in the right direction, following a cautious 2024. I foresee an early return in activity as sellers and buyers adapt to a more even balance between supply and demand. My view is that the property market in Yorkshire is very much open for business and we could well be in for a busy few months of activity in the early part of 2025.

Andrew Beadnall, founder of Beadnall Copley:

2024 was a year of continued stumbling blocks where there was always something on the horizon that would have a detrimental effect on confidence. As a consequence there have been many more reasons for both potential buyers and sellers not to move and as such people have taken a “wait and see” approach.

Hopefully we will be now entering a period of calm and certainty with the likelihood that interest rates will be further reduced meaning that affordability will improve. Given that over the last 18 months there have been more reasons to not move than to move there should be a strong underlying demand.

Supply of properties to the market has also been stunted which is something I would expect to be reversed with Sellers who have potentially wanted to move for a while now having the confidence to do so. As in recent years it is likely to be a price sensitive market and as such marketing at realistic pricing will be vitally important.

Given that there is going to be increased competition with more properties for sale, ensuring that the property is presented to its upmost gives it more chance to stand out from the crowd. So decluttering and finishing off any decorative works that need doing is going to be key.

Numerous changes affecting the rental market have caused a further reduction in the supply of new rental properties coming to the market and whilst demand may have dropped slightly the imbalance with demand still outweighing supply has meant that prices will continue to rise in the coming months.”

Simon Blyth, founder of the Simon Blyth group of estate agencies:

I think that 2025 will definitely be an improvement on 2024. I think there have been lots of events over the last year that have caused people to pause and consider what they are doing when they should be doing it. I think 2025 will be the year where people think they may as well just get on and do it and we are starting to see that play out already.

We had a lot of instructions in the run up to Christmas and good sales in December so I would hope that the new year will continue in that direction. By the time we get to spring I think there will be a good spring in the step, if you like.

The lower to mid end of the market is more active at the moment. The upper end is just holding back and seeing what happens with tax issues and one thing or another and employment costs for their own businesses but I think that will work its way through over the next few months.

Oliver Bottomley, associate director of land and development at Vivly Living, the Yorkshire-based residential property builder and developer:

Over the last year mortgages have been more expensive, so customers have been driving harder bargains. But our natural stone homes continue to prove popular and sales at our West Yorkshire sites of Shepley, Skelmanthorpe and Denby Dale have more than doubled this year, up from 17 homes last year to 38 this year.

People appreciate quality. In terms of securing future land, landowners have been approaching us because they can see we now have a track record of taking green belt land, getting it allocated for housing and then securing planning permission, then ultimately building this out.

With the backdrop of the new Labour Government and their requirement for 1.5 million homes in the next five years, land finding has taken a new twist. As we look at 2025, we are planning to do 60 sales, up from the 38 of this year. We have planning permission for over 100 homes and we intend to have having spades in the ground at new sites in Yorkshire from Q3 2025.

With mortgage rates falling, this will increase the number of buyers in the market. This will help with the ‘next step’ buyers, who have been put off since the Liz Truss’s disastrous budget. With the New Labour Government’s decision to scrap stamp duty reduction for first time buyers, we should see a lot of sales in the first three months of next year.

The new National Planning Policy Framework (NPPF) has told local councils to play their part to meet housing need, with new immediate mandatory housing targets for councils to ramp up housebuilding and deliver growth across the country. Hopefully this will break the over-complicated planning system which is geared in favour of objectors and not development.

Tim Gower, head of residential & professional services at Robin Jessop:

We enter 2025 with optimism following several residential sales that have just been concluded through the best and final offer process, showing continued strength of demand for quality rural property in the Yorkshire Dales and North Yorkshire.

Whilst reductions in interest and mortgage rates did not take place to the extent that was anticipated in 2024, this has resulted in stabilising the market, giving buyers confidence to proceed despite unsettling times due to the change in political scene earlier this year.

Whilst first time buyers would welcome further interest rate reductions or other financial incentives, due to the changes in stamp duty and council tax on second homes, we have seen prices adjusting to a level where local demand can now compete.

This has encouraged competitive demand enabling us to conclude sales by informal tender. Meanwhile in the rural land and property market, a series of smallholdings, equestrian properties together with traditional and commercial farms have all sold exceptionally well, showing that firm demand continues despite the proposed tax changes involving agricultural and business relief. In summary, we enter 2025 with optimism and confidence and look forward to continued strength in all sectors of the rural property market throughout North Yorkshire.

Edward Hartshorne, managing director of Blenkin & Co.:

The resilience of the Yorkshire market is remarkable given the economic hurdles it has had to leap. 2024 is ending with the market in rather a good place and, yes, price reductions have certainly played their part, triggering a raft of end-of-year bids across a wide range and value of property.

However, the signs are that this burst of momentum will continue into 2025. Whatever the doomsters say, in their first term a Labour Government tends to give a boost to the residential property market. Tony Blair oversaw the period of greatest growth in the housing market and although the economic climate is different today, if the Labour Government doesn’t rock the boat, the residential property market will thrive.

That said, a rollercoaster market is surely the new norm, reflecting the turbulence of the country’s political and economic (mis)fortunes. The key to determining activity levels in 2025 will depend on how quickly mortgage rates come down. My feeling is that the predicted lower base rate could provide a launchpad for buyer confidence and create a welcome rise in demand. Growth is always limited by the availability of quality stock tempting enough to persuade buyers to make that leap of faith. In this respect, however, I am feeling confident.

Even at the tail end of the year, appointments continued unabated in a range of property across Yorkshire’s towns, cities and countryside; many of these properties will be launched onto the market this year. At the upper end, the Stamp Duty additional surcharge will continue to influence decision-making, perhaps not helped by the rise in independent school fees.

Taken as a whole, however, my view is that growth will not be stifled by these financial constraints, and I am certainly preparing Blenkin & Co for a busy year ahead. The passage of the Renter’s Rights Bill through Parliament is going to be a key area of concern to landlords who sail too close to the wind. The new landscape is becoming increasingly risky for those not prepared to pay for the advice of a properly qualified lettings/management agent and this may well lead to some investors selling their stock, creating opportunities for buyers.”

Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 20 offices in West and North Yorkshire:

Despite living in landlocked West Yorkshire, it is surprisingly difficult to avoid maritime connotations when looking back on the 2024 market. ‘Headwinds’ and ‘confused seas’ come primarily to mind as one reflects on base rates which refused to fall as quickly as expected; a subsequently outgoing prime minister who surprised many by calling an early election; some frank revelations on the country’s state by the incoming prime minister; and a budget that sent shockwaves through Yorkshire’s farming and business community.

However, despite all this, we leave 2024 with plenty of properties under offer and plenty of opportunities for buyers to buy – a relative luxury post covid. Last year at this time, we predicted price growth. I do so once more, with relative confidence against a foundation of falling interest rates. The cuts might not be as fast as some would hope, nevertheless there is reasonable certainty on the sense of direction, and certainty is critical to the market.

We have traded through boom and bust and it’s clear time and again that individuals and families like to make decisions on a major purchase against a stable background. We have a new government which in theory will be in power for more than four more years and I’m sure homeowners and buyers will soon come to terms with their game plan.

I suspect the next 12 months will deliver a divergence of performance across the various price sectors. The last four months or so have already been more challenging in the upper sectors as the business world takes stock of the world after Rachel Reeves’ first budget – especially the taxation and pension changes. But these are less likely to affect those buying in the core mid-market or indeed first time buyers who will start to reap the rewards of cheaper borrowing.”

Mark Manning, managing director of Northern Estate Agencies Group, which owns Manning Stainton and Ryder & Dutton:

As we step into 2025, the property market is primed to build on the stability and gradual growth that defined 2024. Last year marked a return to a more predictable landscape, characterised by a healthy balance of supply and demand and a steady, sustainable increase in house prices. Data from TwentyEA shows that sales agreed across the Yorkshire and Humber region rose by 17% compared to 2023, while the average sold price of a property grew by just over 3%.

Looking ahead, we expect this momentum to continue, potentially with even greater price growth. One significant driver early in the year will be the rush to complete transactions before the stamp duty holiday comes to an end in April. This deadline is likely to create a short-lived flurry of activity, with increased transaction volumes and a possible temporary spike in prices as buyers and sellers act decisively to meet the cutoff.

However, the broader picture is shaped by a variety of economic and market factors. The government’s recent budget, particularly the changes to National Insurance Contributions, has raised concerns about its impact on businesses and the wider economy. Despite these challenges, most businesses are expected to adapt, safeguarding their margins even if it means passing on higher costs to consumers.

At the same time, lenders will remain highly competitive, offering favourable conditions for borrowers. This, combined with stronger household savings, bolstered by interest earnings that now exceed £40 billion per year, will continue to empower first-time buyers with the financial backing from the “Bank of Mum and Dad” helping many take their first steps onto the property ladder.

This confluence of factors in resilient demand, constrained supply, and supportive lending conditions, will sustain the upward trajectory of house prices. We anticipate growth of between 5% and 7% over the course of the year, reflecting a stable yet dynamic market.”

Jonathan Morgan, partner at 
Zenko Properties:

It’s fair to say that 2024 has been another ‘interesting’ year for the city centre property market in Leeds. On reflection, the total number of rental enquiries we have received is significantly down but the number of new rental contracts we have agreed is up.

Whilst this has perplexed us for much of the year, we have come to understand that the drop off in enquiries is due almost exclusively to the decline in demand for premium city centre rentals from overseas students. Changes in immigration rules in January of this year and some lingering concerns about the cost of living in the UK have led to reduced demand. Overseas students have typically arrived in the city centre rentals market late in the season and have always been relied upon to let up some of the higher end apartments in locations such as Park Row and Wellington Street.

It is also the case that a number of the larger BTR schemes have got used to seeing their overseas student occupancy rate at somewhere around 20-30% so this decline will be causing some consternation. Looking ahead, we will be re-focusing our attention on the tens of thousands of young professionals who choose to work in well paid jobs and who crave the convenience of living in the city centre. There is a possibility, in hindsight, that this group has been squeezed out of the market since before COVID and is about to return in numbers -we are targeting a very big year for rentals in 2025.

Sales demand in the second half of this year in particular has been really strong and we think that 2025 could be the best year for a while for owner occupier activity. Inflation is under control, the shock of political change is waning, interest rates are on a downward trajectory and 5-year forecasts for house price growth are strong.

Most significantly in the city centre context, more and more buildings are being released from the cladding issues which have made them unsaleable. At the same time, significant infrastructure change is coming to fruition, making for a much more attractive environment than we have experienced over the past few years. Onwards, Leeds.”

Nicola Spencer, managing director of Spencers estate agents, Sheffield:

It seems to have been a tumultuous few years for the property sales market and we are hoping that people are going to finally start to bite the bullet and “just get on with it”.

In 2024 we seem, once again, to have been plagued with buyer indecision with the year starting slowly and then with the market stalling at the announcement of the general election and the uncertainty of changes to policy in the lettings and sales markets.

Unfortunately, the change of government and changes afoot to Renters Rights as well as stamp duty, inheritance tax and unclear policies to come not yet defined, many property owners haven’t sprung into action, unless it is to dump HMO properties and rentals.

Sheffield has seen a monumental drop in university applications this year creating further confusion and a surge of investment stock onto the market, many of which have reverted to residential ownership. We keep saying that nothing else can stall the market after riding storms of a global pandemic, the war in Ukraine, global political uncertainty and changes to the world’s leading countries, a change of government, 14 increases in interest rates, chaotic policies, and political indecision, however, what else can possibly go wrong? (*crosses fingers in hope*)

Aspirational movers are the ones we want to see back in the game, with a hope that the top end of the market will slowly start to improve, as the first time buyer market has been pretty consistent throughout the year. Looking forward to 2025, we see a steady confidence returning and an acceptance of the government change forcing buyers to get on with their lives with some ambition in mind instead of standing still. We live in hope.

Ed Stoyle, head of residential 
sales at Savills:

Across the country, sales activity fluctuated this year, but in Yorkshire we recorded a particularly strong year for transactions, which rose slightly compared to 2023.

This was despite considerable headwinds, namely uncertainty during the run-up to the general election and again later in the year, as Budget-related hesitance grew. While price growth has been negligible, Yorkshire’s enduring popularity as an aspirational and desirable place to live has underpinned its continued stability over the past 12 months, where other popular regional markets have grappled with a more challenging year.

Despite the positive local market, the lead up to the Budget brought with it an understandable level of caution, as buyers and sellers worried about what changes might be to come. Investors and second home owners will have been relieved that the rate of capital gains tax on residential property was unchanged, however an unexpected increase in stamp duty land tax surcharge on second homes from 3 to 5 per cent will inevitably tighten budgets for prospective buyers.

Looking ahead, with the Budget now behind us, and a clearer path ahead, we expect sentiment to improve, particularly among mortgaged buyers who should continue to benefit from an improved lending environment.

Across Yorkshire, demand for well-presented homes in prime locations remains strong. According to our latest research, house prices across the Yorkshire and Humber are expected to increase by 5% in 2025, equal to the UK average of 5% and by 28.2% in the five years to 2029, compared to a UK average of 23.4% over the same period, so we anticipate a positive year ahead.

There remains plenty of choice of property for sale, from best-in-class period townhouses and apartments to pretty village homes and contemporary gems but this choice is likely to narrow as buyer numbers increase and confidence returns. However, the narrowing gap between buyers and sellers regarding price expectations will be crucial to maintaining market activity.

Demand for Yorkshire property is likely to continue to be driven by those looking to move into the area from elsewhere, including London and the south east. As usual, homes with good access to popular schools will perform well, likewise those with particularly good connectivity. I anticipate that in early 2025 we will start to see more hotspots developing across North Yorkshire particularly, as buyers recognise the lifestyle and value on offer.

Tim Waring, prime residential 
at GSC Grays:

Whilst the market followed the traditional trend by quietening in the run up to Christmas in terms of the number of negotiated sales, by contrast the online activity noticeably increased against the seasonal norm.

As we go into the New Year this trend has continued, supporting our internal market research that there is clearly pent-up intent. Whilst some who are planning to move are holding back, openly admitting they are waiting to see how the market reacts to macro events, it begs the question how long will they wait in what is an ever-changing world?

The hesitation that permeated into the wider marketplace in the latter part of last year continues. But it will not last, it never does, begging the question when or what will be the tipping point?

We think it could be sooner rather than later, with Spring 2025 looking increasingly likely. There does seem to be widespread expectation that house prices will hold during 2025 with some commentators predicting there may be modest single figure growth over the course of the year. Unlike other issues of late, what has yet to attract the eye of the media is the change to Stamp Duty Land Tax this Spring when the relief on purchases up to £250,00 reverts to £125,000.

This may well stimulate the housing market at the lower end sooner rather than later, with a knock-on effect into higher price brackets. Whilst the housing market has certainly been interesting since 2020, we perceive it is moving into a calmer environment where buyers and sellers alike can make informed decisions. As such we anticipate 2025 could well be very active, provided buyers and sellers have confidence and realism in equal measure.

Confidence that the market has stability going forward and realism as to what a property is actually worth, not what they might be hoping for. Consequently there is no reason to think that by waiting to sell in say late summer, as compared to the Spring, the proceeds of sale will be significantly different.

Tom Watson, Cundalls, Malton:

Unfortunately, my ‘crystal ball’ didn’t arrive under the Christmas Tree and as we head into 2025, due to economic uncertainty, it is difficult to predict where the housing market during 2025 will go and where we will be by this time next year.

In my view, the Autumn budget has done nothing to encourage growth and the increase in minimum wage and will do little to dampen inflation, this won’t help interest rates fall back as it looked like they were beginning to do, so ultimately this may impact on market sentiment and affordability. Overall, the end result will likely be that we are all dealing with larger figures, but are no better off! The general reaction from business owners I come across in various sectors is all quite negative and I wouldn’t be surprised if we see falling growth for the final quarter of 2024 when official figures are announced.

The market for country properties and properties with land, remains strong and whilst perhaps not as buoyant as immediate post Covid, the ability to ‘live and work from home’ means we do still see high net worth buyers who have City jobs or businesses, relocating to coast and country for a better quality of life.

Andrew Wood our Malton residential manager reports that Malton and the surrounding villages continues to be popular and with good road and rail links to York, people are realising that they ‘get more for their money, as they head east’.

Judith Simpson our Pickering residential manager reports that there is still frustrated buyers looking for country properties particularly along the northern edge of the A170 corridor between Helmsley and Scarborough which provide good access to the coast and National Park.

As ever, the most crucial factor in the industry is pricing. A property can be perfect, but if it is priced too high it won’t get interest and will struggle to sell. Unfortunately, in our view we are still seeing certain properties go on the market at inflated prices, which in the long run doesn’t help the vendor or agent.

Overall, we are blessed to live and work in a beautiful part of Yorkshire which is in the most part still unspoilt and provides a great quality of life, therefore there will always be good demand for the ‘right properties in the right location and most importantly at the right price’.