Here we have the best breakdown of Kent house prices, with fresh information added every month.
This month, we're shaking things up in our Insight report on the UK and Kent housing market with an in-depth exploration to kick start the year. Here we review the key trends and developments that shaped 2024 and offer insights into what the housing market might hold for 2025. As always, we’ll give some insight into the Kent market, providing valuable local perspectives to help you navigate your buying or selling decisions with confidence in the months ahead.
Looking at a broad range of data and expert predictions coming out, our general view is that 2025 will be a healthy year of growth in the housing market. We expect to see house price growth at a national level. Furthermore, while Kent house prices have been softening over the last few years, it’s likely that momentum will gain in the region, along with the rest of the South East. Nonetheless, this won’t be stark, and overall, it’ll be a buyer’s market.
It’s difficult to predict for a whole year, with so many unknowns yet to emerge, but at the moment we believe that this first quarter of 2025 is potentially where the busiest activity and change happens. We’re witnessing the pent up demand becoming active following the election, prior to which many people held fast to see what was going on. Added to this, we’ve got both buyers and sellers keen to complete before the relaxation of stamp duty reverts to normal in April.
While these predictions point to a buoyant start to 2025, it’s worth noting that this would be representative of a slightly unusual picture. It’s normal for Q1 in any year to be muted before activity picks up the spring. It’ll therefore be interesting to see whether 2025’s predicted strong start continues into Q2, or whether we see a slightly different overall pattern in 2025.
Amanda Bryden, Head of Mortgages, Halifax, commenting on the December 2024 Halifax House Price Report said:
“UK house prices finished 2024 up +3.3% over the year, with the average house price £297,166. Prices fell back slightly in December, by -0.2%, following five consecutive monthly increases.
The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards. In the latter half of the year, house prices grew in response to the falls in mortgage rates, alongside income growth, both leading to financial pressures somewhat easing for buyers. Impending changes to Stamp Duty thresholds have also given prospective first-time buyers even greater motivation to get on the housing ladder and bring any home-buying plans forward. Together, these elements meant mortgage demand picked up, hitting the highest level in over two years and back to levels seen pre-pandemic.
In many areas across the country, house prices were also buoyed by demand outstripping supply, possibly further amplified by homeowners holding off putting their property on the market – perhaps in anticipation of mortgage rates reducing further.”
Fundamentally, the housing market exceeded expectations and bucked predictions in 2024. It had been anticipated that it would be a year of contraction. And this is true in some small areas, including Kent, but not across the entire nation, and not in averages. Once again, the UK housing market demonstrated its incredible resilience, especially in light of affordability challenges.
Returning to the words of Amanda Bryden, Head of Mortgages, Halifax:
“While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement on upcoming Stamp Duty policy changes, mortgage affordability will remain a challenge for many, especially as the Bank Rate is likely to come down more slowly than previously predicted. However, providing employment conditions don’t deteriorate markedly from a more recent softening, buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year.”
As we move into 2025, several factors are poised to influence the housing market. The scheduled changes to stamp duty in April are expected to prompt a surge in transactions during the first quarter, as buyers strive to complete purchases before the new rates take effect. Post-April, a potential slowdown in activity may occur due to the increased tax burden. However, bear in mind that this is based on the information available at the moment. Any new announcements, or policy changes, could change this.
Interest rates are another critical determinant for the housing market over the coming year. While the Bank of England is anticipated to implement gradual rate reductions throughout 2025, the exact timeline and extent remain uncertain. These rate adjustments will directly impact mortgage affordability, thereby influencing buyer demand and overall market dynamics. Because the rates are predicted to decrease gradually, it’s likely that mortgage rates will lag as they come down too. This will impact affordability for longer than if mortgage rates came down more rapidly.
Regional disparities in house price growth are expected to persist. Analysts predict that London may experience a resurgence, with price increases potentially outpacing other regions for the first time since 2015. This shift is attributed to factors such as the capital's previous underperformance and a renewed demand for urban living, with a reversal of the pandemic’s ‘race for space.’ Conversely, regions in the North and Midlands, which saw significant growth in 2024, may witness more moderate increases.
Overall, experts forecast modest national house price growth in 2025, with estimates ranging from 2% to 4%. This reflects ongoing affordability challenges, potential economic uncertainties, and the balancing effects of policy changes and interest rate fluctuations.
Prospective buyers and sellers should remain cognizant of these evolving factors. Staying informed about market trends will be essential for making well-informed decisions in the dynamic housing landscape of 2025.
While national averages have witnessed overall house price growth in 2024, as our reports have highlighted throughout the past year it’s been imperative to look at the regional picture. These averages have been pushed up by stark house price growth in regions such as Northern Ireland. Along with the rest of the south east, Kent has actually seen a decline in the area’s average house price. In 2023, house prices in the region fell -4.5%. In 2024, the decline was less, but still evident. Indeed, the Land Registry reports growth of 1.7% across the county. Regardless, Kent prices are still solidly above 2021 levels.
However, it’s also important to remember that no single county is homogenous. There are distinct areas of growth within the county. For example, Tunbridge Wells experienced a high rate of house price growth of 8.1% over the last year. Maidstone saw a 3.7% rise in average prices, and Sevenoaks 1.8%. The average was pulled down by areas such as Dover and Dartford which saw drops in their average property prices.
Overall, and based on our thoughts here on the ground in Kent, we are experiencing a strong start to the year. There’s a lot of activity amongst buyers and sellers, beyond the typical post-Christmas resurgence. It’s likely that the first quarter will follow the predictions for the rest of the country, with buyers and sellers keen to complete on their moves before April, particularly for first time buyers, which is mirrored in the high activity in smaller properties. What will happen in April and beyond is likely to be a steady period of resilience, as the wider economy continues to weather the difficulties it faces. What that will look like isn’t settled. Some experts, like Hamptons, are forecasting growth in the South East above the national average at around 4%, while others believe that house prices in the area will continue to stabilise.
While national and regional trends remain informative, at the end of the day, property buying and selling, and especially moving day, remain highly individual experiences. We’re here to bring you the personal service you need. For a quote, please call 01622 672217.