What’s happening in the housing market, and what might be on the horizon for the rest of 2025? Here’s a look at the latest updates that could affect Thetford homeowners and buyers.
Base rate decision
The Bank of England’s Monetary Policy Committee took a cautious approach last month, voting to hold the base rate at 4.5%.
Governor Andrew Bailey said he still believes that “interest rates are on a gradually declining path,” suggesting reductions could be coming later this year.
Good news on the mortgage front
While the base rate stayed the same, there was movement in the mortgage market. Average rates dropped by their biggest margin in months, with many lenders now offering sub-4% deals on 60% LTV mortgages.*
However, borrowers are reminded to check the fine print. One lender’s tempting 3.99% deal came with an arrangement fee of nearly £2,000 — around £1,500 more than similar products.
It’s also worth acting quickly when you spot a good offer. The average shelf-life of a mortgage deal in March was just 16 days, down from 36 days in February.
Price growth and market stability
Fresh data from Savills showed that the UK housing market grew by £22.3 billion in 2024, reaching a total value of £379 billion — a 6.3% increase year on year.
Lucian Cook, Head of Residential Research at Savills, said this growth reflects renewed stability in the mortgage market.
He predicted continued confidence for 2025, explaining that “further interest rate cuts expected this year will widen the range of buyers and boost spending power.”
First-time buyers up, cash buyers down
Savills also reported a notable rise in the use of mortgage finance to buy property — up by £24.3 billion in 2024 — particularly among first-time buyers. In contrast, cash buyers spent £8.4 billion less than the previous year.
Mr Cook noted:
“The rise in first-time buyers reflects the overwhelming desire of Britons to get a foot on the housing ladder. Those able to pull together a deposit have continued to take the plunge, despite higher prices and borrowing costs.”
What this means for Thetford
Thetford’s market continues to show resilience, with well-priced homes generating strong interest from motivated buyers. The expected interest rate cuts later this year could make mortgages more affordable, helping sustain demand through 2025.
If you’re considering selling your property in Thetford, now’s an excellent time to explore your options. Call us to arrange a free valuation and find out how much your home could be worth in today’s market.
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Interest rates are always subject to change.
Article by Andrew Overman | Partner | Location Location East
