Property Market Outlook for 2025

The UK property market in 2025 is expected to enter a phase of steady growth and recovery, with the East Midlands poised to be a key area of interest. Following a period of slower market activity, house prices are forecast to rise modestly, with national predictions suggesting an increase of 3-4%. The East Midlands, known for its strong connectivity and diverse housing stock, is expected to see growth in line with or slightly above the national average due to continued demand from both first-time buyers and families seeking value outside larger urban centres.

Head of Residential Property at Shoulers, Richard Cleaver said “As mortgage rates stabilise, affordability will improve, creating more opportunities for buyers in the region. By the end of 2025, average two- and five-year fixed mortgage rates are projected to decline to around 4%, making borrowing more accessible. This shift is likely to encourage renewed activity, particularly in areas like Derby, Nottingham, and Leicester, which have long been hotspots for affordability and accessibility. The region’s mix of urban amenities and rural charm continues to attract those relocating from more expensive areas like London and the Southeast”

Richard continued “The East Midlands’ property market will also benefit from ongoing infrastructure projects and regional investments. Improved transport links, such as enhancements to rail and road networks, are expected to bolster connectivity and make the area even more attractive to commuters and businesses alike. These developments, coupled with the region’s comparatively lower property prices, will ensure sustained demand from both homebuyers and investors”.

“Transaction volumes are anticipated to rise, reflecting increased confidence in the market. The East Midlands’ appeal as a desirable place to live and work remains strong, and its affordability compared to neighbouring regions continues to draw buyers seeking value for money”.

It is also expected that policy changes will also play a role in shaping the market in 2025. Adjustments to stamp duty thresholds, effective from April, may prompt a surge in transactions earlier in the year. First-time buyers and those purchasing homes within the region’s mid-range price brackets are likely to benefit most from these changes.

In commercial property, the East Midlands is well-positioned for growth, with increasing interest in logistics and industrial developments, thanks to its central location and proximity to major distribution hubs. This sector is expected to see continued investment, further boosting the region’s economic appeal.

Overall, the East Midlands property market in 2025 is set to offer a mix of opportunities for buyers, sellers, and investors. With a stable outlook, improved affordability, and strong demand underpinned by ongoing regional developments, the area is likely to remain one of the UK’s most dynamic and attractive regions for property investment.

To find out more about Shouler & Son’s full range of residential estate agency services, see shoulers.co.uk/pages/residential-services.