The Yorkshire property market is poised for a significant boost, with home prices forecasted to rise by 3.5% in 2025, reflecting a national trend driven by anticipated cuts in borrowing costs. The Bank of England is expected to lower the base rate by 75 basis points, potentially bringing it down to 3.75% by year-end. This is great news for both buyers and sellers across Yorkshire, as reduced mortgage rates are likely to improve affordability and stimulate market activity. While house prices are on the rise, rental costs are expected to outpace them, with a predicted 4% increase due to persistent demand outstripping supply—especially in thriving towns like Malton, Thirsk, and Selby.

This forecast offers a positive outlook for local homeowners and potential buyers looking to invest in North Yorkshire’s property market. First-time buyers, in particular, could benefit from lower mortgage rates, making it easier to step onto the property ladder. However, with inflation averaging 2.8% this year, the Bank of England will tread carefully with further rate cuts. The outlook suggests a cautiously optimistic future for the region’s housing market, with opportunities for both residential buyers and investors keen to capitalize on North Yorkshire’s enduring appeal.