As we step into 2025, it’s the perfect time to reflect on how the housing market performed last year and what it means for Lancaster. Across the UK, the average property price grew by 3.6% in 2024, with the North leading the way at 5.9%. In contrast, East Anglia saw minimal growth at just 0.5%.
Why Do Regional Differences Exist?
A key factor is affordability. Areas like London, the South East, and the Outer Metropolitan region saw slower growth due to higher underlying costs. Rising mortgage rates in 2024 heightened affordability pressures in these expensive regions, dampening price growth.
In contrast, more affordable regions like the North have shown resilience. Buyers are drawn to these areas for their balance of value and livability, with affordability acting as a driving force behind their strong performance.
Lancaster’s Market in Context
Lancaster has shown steady growth, with an overall price increase of 2.6% in 2024. While this falls below the regional average of 5.9%, it reflects healthy demand and price stability.
However, affordability remains critical. With mortgage costs still a significant factor, the anticipated interest rate cuts by the Bank of England in 2025 could boost buyer confidence and spending power, especially in regions like Lancaster where prices remain accessible.
Looking Ahead
Lancaster’s housing market is poised for modest growth in 2025, supported by its affordability and appeal. While prices are expected to rise, the broader economic landscape will limit the pace. Buyers and sellers must stay informed about shifts in mortgage rates and local market conditions.
For those considering buying or selling in Lancaster, now is a great time. Our active market continues to outperform many others, offering opportunities for both investments and dream homes. Understanding Lancaster’s position in the broader market will be key to making the most of 2025.
If you want to talk about the housing market or your home’s value, please get in touch. At JDG we are always here to help.
Thanks for reading
Michelle x
