With over 15 years of experience in the property sector as a Chartered Surveyor, I have developed a deep understanding of market trends during my time in undertaking, and more recently reviewing, secured lending valuations for loan security purposes. I earned an MA in European Real Estate Management from the University of Kingston in 2007, laying the foundation for my expertise in the industry. Since joining MSP Capital in 2018, I have played a key role in managing valuer relationships, providing internal consultancy advice, and driving strategic growth within the business.
As the year continues into 2025, the housing market presents key opportunities for developers and investors, alongside some challenges. With shifting buyer trends, rising stamp duty rates, and a continued buyer’s market, this year will require a strategic approach to land acquisition, planning, and development. This article gives insights into the forecast for 2025, with acknowledgment from Rightmove and property professionals Savills.
A Buyer’s Market: Opportunities for Developers
One of the most defining features of 2025 will be the continuation of a buyer’s market. Rightmove’s analysis highlights a broader selection of properties and land for sale, as well as longer transaction times, creating more opportunities for developers to secure sites at competitive prices.
While the average asking price is forecast to increase by 4% – marking the largest growth since 2021, this is in line with long-term market trends. Sellers will need to price competitively to attract interest, which presents an ideal environment for developers to acquire land and distressed assets below peak market value.
The market conditions offer developers a strategic advantage – not only in securing land at favourable prices but also in capitalising on the predicted gradual price increases, which can help drive strong returns on investment over time.
“This is a year where patience pays off for buyers, for developers, this means opportunities to negotiate attractive deals, particularly on sites that have been sitting on the market longer than usual.”
Stamp Duty Changes: Impact on Development Sites
One of the most significant developments for the 2025 market is the rise in stamp duty rates from April 1st. Rightmove data already indicates a surge in buyer activity as first-time buyers and investors rush to complete purchases before the deadline.
For developers, this shift is particularly important. Stamp duty thresholds will have a varied impact across regions, with land in certain areas becoming more attractive due to lower tax implications. For example, while only 8% of homes in London will qualify for first-time buyer stamp duty relief under the new £300,000 limit, over 70% of homes in the North East fall under this threshold, making northern development sites a compelling investment.
This is a crucial time for developers to reassess where opportunities lie. With land values and demand shifting in response to these tax changes, we expect increased competition for development sites in regions where affordability remains strong.
For those involved in planning and new-build projects, factoring in the changing buyer behaviour caused by stamp duty increases will be key to shaping development timelines and pricing strategies.
Why 2025 Is a Strong Year for Development
Despite some uncertainty, 2025 presents a unique opportunity for developers. The continued buyer’s market means attractive land deals remain available. Meanwhile, lower mortgage rates – predicted to average around 4.0% for both two and five-year fixed deals – are expected to improve affordability and boost buyer confidence.
Timing is critical in 2025. For developers, the first half of the year will be a prime window to acquire land before potential competition increases. The key will be identifying areas where demand remains strong despite tax changes and aligning development plans with shifting buyer priorities.
Whether you’re considering site acquisition, planning applications, or launching a new development, understanding these market trends will be essential. As always, working with the right people and staying ahead of regulatory changes will be key to maximising success in 2025.imag
