Gravesend House Sales Up 2.6% as Interest Rates Fall

Last week, the Bank of England's interest rate dropped to 4.5%, marking its third cut in under a year. This decision follows a previous reduction in November 2024, with the rate remaining unchanged in December. While most of the Bank’s policymakers supported the move to 4.5%, a minority favoured a more aggressive cut to 4.25%, highlighting the ongoing uncertainty surrounding the UK economy.

The decision is widely seen as a positive step for the housing market. Lower borrowing costs could improve affordability, boosting confidence for homebuyers and those looking to remortgage. Activity levels in the property sector have already shown improvement, with increased buyer registrations at the start of the year. However, while sentiment may improve, the immediate effect on mortgage rates is expected to be gradual as lenders respond cautiously to the new environment.

The trajectory of further interest rate cuts will depend on broader economic stability. Although inflation is lower than last year, it remains a key factor influencing future monetary policy. While there is optimism that additional cuts could follow in 2025, economic volatility means nothing is guaranteed.

The latest rate cut is expected to boost confidence in the property sector.

So, what does this mean for Gravesend homeowners and buyers? 

The UK property market was already showing signs of resilience in January, so this cut will benefit it with even more improved affordability. However, sustained growth later in the year and beyond will depend on wider economic conditions and how quickly lenders adjust mortgage rates in response.

Looking at the January stats, the number of UK homes sold subject to contract in January 2025 was 98,978, a rise of 17.2% from January 2024, when 84,509 UK homes sold stc. For comparison, only 70,277 homes were sold stc in January 2023. 

Regionally, this was mirrored in the South East, as there were 13,478 homes sold stc in January 2024, which increased to 15,888 homes in January 2025.

Looking at all the UK regions and the number of homes sold stc in January 2025, compared to January 2024, the East Midlands saw the biggest jump, with sales up 27.5%, followed closely by East Anglia, which surged 26.6%. The South East also performed well, rising 17.9%, with the South West not far behind at 16.9%. London saw a strong 18.1% increase, showing continued resilience in the capital. The West Midlands climbed 14.5%, the North East was up 14.1%, and the North West followed at 13.4%. In Yorkshire & Humber, sales increased 12.7%, and Wales recorded a 13.9% uplift. Scotland saw a more modest rise of 5.3%, while Northern Ireland was the only region to decline, down 3.4%.

Looking at Gravesend's picture …

• In January 2023, 75 Gravesend homes sold stc, with an average price at sale agreed of £321,711.

• In January 2024, 116 Gravesend homes sold stc, with an average price at sale agreed of £378,641.

• In January 2025, 119 Gravesend homes sold stc, with an average price at sale agreed of £339,642.

(Gravesend = DA11/12).

House sales in Gravesend have risen 2.6% year-on-year and an astonishing 58.7% compared to two years ago.

Optimism has been evident among prospective buyers and sellers throughout the last six months of 2024. This is despite mortgage interest rates rising ever so slightly since the summer of 2024. This modest cut in rates will do a lot to reduce mortgage rates in 2025 and thus continue demand for property.

What about house prices in 2025?

Denton House Research continues to publish the £/sq.ft metric on sales agreed, which has proven to predict Land Registry figures five months in advance with a 92% accuracy. January’s final figure for the UK sales agreed stands at £342/sq.ft, showing an upward trend from £339/sq.ft in December 2024, £334/sq.ft in August 2024, and £330/sq.ft in January 2024. This means UK house prices have risen 3.64% in the last 12 months. 

Even with this upswing in property market activity, I believe house price levels are likely to remain roughly stable.

Considerations for Gravesend’s property market.

This latest data provides an opportunity for reflection.

For Sellers: The market is changing, requiring a more strategic, adaptable, and patient approach. Properties are taking longer to sell, so a competitive price is essential to securing a buyer.

For Buyers: The market presents both challenges and opportunities. Some properties will still attract strong competition, but many buyers will benefit from more choices and additional decision-making time.

External factors such as global economic shifts, inflation, and interest rate changes could influence Gravesend's property market. 

Selling and buying your Gravesend home: Key Strategies.

Given the current conditions, a well-planned approach is essential.

For Sellers: Pricing remains the most crucial factor in attracting the right buyer. Beyond that, standout marketing will make a difference. High-quality video tours, targeted social media campaigns, and interactive property listings can help a home stand out in a more competitive market.

For Buyers: The property market is different in every part of Gravesend. Each area has its trends. If you are looking for a property that is in high demand, expect competition. Having a mortgage pre-approval in place will provide an advantage over other buyers. Expanding the search area may also uncover hidden opportunities. In a less competitive market, buyers have more negotiating power on price and extras such as carpets, fixtures and fittings.

One key point is that 81% of home sellers are also buyers. If you achieve a lower price than expected when selling, you should gain when purchasing your next home.

As we move into 2025, the Gravesend property market remains a mix of opportunity and challenge. Whether you are a first-time buyer, a homeowner planning to move, a buy-to-let investor, or someone relocating, understanding the market's trends will be essential.

The best approach is to stay informed, remain adaptable and remember that moving home is about the transaction and the journey.

What are your thoughts on Gravesend’s changing property market? Do you expect any major shifts or trends? I would love to hear your insights.