"Penrith property market sees strong growth in 2024 with a promising outlook for 2025" is the message from Grace Oakey, H&H Land & Estates, Penrith
“The Penrith property market has seen significant growth throughout 2024, driven by rising incomes and a gradual lowering of mortgage rates. According to Zoopla, property prices have risen by 1.5% compared to a year ago. Despite the challenges we are seeing as a result of the recent Budget, this upward trend is a positive indicator for the property market.
First-time buyers have remained highly active in Penrith and the surrounding areas, and we have successfully agreed 11 property sales to this sector of the market in November and early December alone. With buyers taking more time to leverage current market conditions, family homes within the £350,000 to £650,000 price range have been slower to move. Lifestyle properties and small holdings with a few acres continue to be in high demand, attracting cash buyers. H&H Land & Estates continues to see strong interest from these buyers, and we have several potential cash buyers waiting in the wings looking for similar properties.
The October Budget has had an immediate and noticeable impact on the housing market. The most significant change is the increase in stamp duty for additional property purchases, which rose from 3% to 5% immediately after the Budget. This has created challenges for second-home buyers, who now need more funds to complete transactions.
Additionally, the rise in capital gains tax could affect buyers, particularly landlords considering additional purchases. While the capital gains tax rates on residential sales remain at 18% and 24%, the higher stamp duty thresholds set to decrease in April 2025 could make it more expensive for first-time buyers or home movers looking to upgrade, especially when considering properties priced above £300,000. Although Penrith rarely sees first-time buyers at that price level, it is a factor worth noting for those entering this range.
Looking ahead to 2025, I expect house prices and sales volumes to continue their upward trend. We already have here in our Penrith office a number of properties waiting to be listed on Boxing Day 2024 and several to be launched into the New Year. Despite the uncertainty around mortgage rates, I anticipate that lenders will develop innovative ways to assess affordability, ensuring demand is met.
Zoopla’s prediction of a 2.5% house price rise by 2025 is encouraging, signalling continued growth for both buyers and sellers in the Penrith market. This momentum sets a positive tone for the new year, and everyone here at H&H Land & Estates are looking forward to supporting our clients through this period of opportunity.”
H&H Land & Estates is one of Cumbria’s leading property agencies, offering a range of services including residential sales and lettings, land, and estate management. With a long-standing presence in the region, the team prides itself on in-depth local knowledge, expert advice, and a commitment to achieving the best outcomes for both buyers and sellers. They work across a variety of property sectors, including residential, agricultural, and commercial, helping clients navigate the complexities of the property market.