The UK property market is predicted to experience modest growth in 2025, with Knight Frank forecasting a 2.5% increase in house prices. This competitive landscape makes securing the right property at the right price more crucial than ever. Hyperloop Capital Insights has consulted with six property experts to identify the key features that will top buyers’ wish lists in the coming year. From energy efficiency to unique architectural styles, understanding these trends is essential for navigating the 2025 property market.
Table Content:
- Freehold Houses: A Growing Preference
- Bungalows: The Wildcard of 2025
- Finished Properties: Ready-to-Move-In Appeal
- Period Details: Enduring Charm
- Privacy and Security: Urban Priorities
- Wellness: A Growing Trend in Luxury Real Estate
- Outdoor Space: Continued Demand
- Energy Efficiency: A Key Consideration
- Sustainability: Building for the Future
Freehold Houses: A Growing Preference
Demand for freehold houses is surging, driven by two primary factors. Firstly, the prevalence of new-build flats and apartments, particularly in urban areas, has created an oversupply compared to houses. Vincent Dennington of John D Wood notes, “The market is saturated with new apartment developments, which can make their resale value relatively weaker.” Two-storey houses are especially desirable, appealing to families with young children and older buyers seeking to avoid mobility challenges.
Secondly, as property prices rise and first-time buyers enter the market later in life, the desire for family-sized homes increases. Oliver Sanhaji of Middleton Advisors observes that buyers are willing to “skip the first-stage flat purchase and buy a smaller house on their preferred road,” maximizing long-term value and potentially saving on stamp duty land tax.
Bungalows: The Wildcard of 2025
One-storey bungalows are emerging as a surprising contender in the 2025 market. Traditionally favored by older residents, bungalows now attract developers who often secure planning permission to expand upwards, doubling the living space. Independent estate agent Sarah Walker predicts, “The wildcard for the year will be bungalows, which are quietly becoming hot property as ageing demographics drive demand.”
Finished Properties: Ready-to-Move-In Appeal
The pandemic-induced surge in labor and material costs has shifted buyer preferences towards move-in ready homes. “The disparity will continue to grow between houses requiring renovation and houses that have just been finished,” says Sanhaji. Mark Crampton of Middleton Advisors concurs, emphasizing the appeal of properties with updated heating and plumbing systems in the current economic climate. Finished properties offer a convenient and cost-effective alternative to undertaking potentially expensive renovations.
Period Details: Enduring Charm
Despite the challenges of renovating and maintaining older properties, period homes retain their allure. “Period houses remain highly sought after despite the focus on energy efficiency,” notes Dennington. Their unique character, spacious rooms, and generous gardens offer a timeless appeal that new builds often struggle to replicate. Modern upgrades can enhance energy efficiency without compromising the inherent charm of these historic homes.
Privacy and Security: Urban Priorities
For city dwellers, privacy and security remain paramount. Kate Donneky of Rhodium, a luxury management and advisory firm, anticipates increased demand for developments with features like private elevators, gated communities, and separate entrances.
Wellness: A Growing Trend in Luxury Real Estate
In the luxury market, wellness is no longer confined to gyms and swimming pools. Donneky highlights the rising importance of biophilic design, natural light, improved air quality, and dedicated spaces for yoga, meditation, and fitness in ultra-luxury residences.
Outdoor Space: Continued Demand
While not as dominant as during the pandemic, outdoor space remains a highly sought-after feature. Crampton emphasizes the appeal of private gardens or balconies for flats and apartments, as well as houses situated on quieter streets away from noise and traffic.
Energy Efficiency: A Key Consideration
Rising energy costs have made energy efficiency a top priority for buyers. Whether driven by upcoming EPC regulations for rental properties or a desire to minimize household bills, homes with features like solar panels, air source heat pumps, and effective insulation will be highly competitive. Walker notes, “EPC ratings aren’t just a box-ticking exercise anymore — they’re becoming a shorthand for desirability.”
Sustainability: Building for the Future
Aligned with energy efficiency is a growing emphasis on sustainable building practices. Donneky predicts that developers will need to incorporate sustainable materials and energy-efficient technologies to attract environmentally conscious buyers. Certifications like LEED or WELL will become increasingly important selling points, particularly for investors seeking to mitigate the risk of property depreciation due to subpar environmental credentials.
In conclusion, the 2025 UK property market will favor properties that offer a blend of traditional appeal and modern conveniences. Freehold houses, bungalows, finished properties, and period homes with updated features will be in high demand. Buyers will also prioritize privacy, security, wellness, outdoor space, energy efficiency, and sustainability. Understanding these trends will be crucial for both buyers and investors seeking to navigate the evolving property landscape.
