The Cotswolds Property Market: Percy Clarke Looks Ahead to 2025

The fundamental elements which make the Cotswolds a great place to live will, of course, remain unchanged as we move into 2025. Its excellent schools, outstanding dining and shopping options, and great transport links make it a magnet for buyers seeking both primary and second homes. Unsurprisingly, demand remains strong and supply is limited.

However, like the rest of the UK, the Cotswolds is not immune to economic pressures. House prices nationwide are expected to soften as inflation and the Bank of England’s cautious approach to interest rate cuts keep mortgage rates elevated. These factors will likely temper sales activity, particularly in price-sensitive segments of the market. That said, the Cotswolds’ desirability and limited supply mean that certain sought-after villages and unique properties could still see modest price increases.

Rental Market Trends

The rental market remained active in 2024, and this momentum is likely to carry forward. Family homes and cottages are particularly in demand, driven by renters waiting to buy and those priced out of ownership by higher mortgage costs. For investors, this could present an opportunity, as high-end rentals and holiday lets continue to offer strong yields despite the increased Stamp Duty Land Tax (SDLT).

Green Features Driving Demand

Energy efficiency is becoming a key factor in both sales and rentals. Properties with features like EV charging points, heat pumps, solar panels, and strong EPC ratings are increasingly sought after as buyers and tenants prioritize sustainability amid rising energy costs and government initiatives.

Challenges for 2025

Higher mortgage rates will likely curb activity among mid-market buyers, while tight planning restrictions in the Cotswolds’ Area of Outstanding Natural Beauty (AONB) will continue to limit new housing supply.

Advice for Buyers and Investors

• Buyers: Consider acting early in 2025 before potential interest rate reductions reignite competition.
• Investors: Focus on premium rental properties or holiday lets with energy-efficient features to future-proof your investment.

The Outlook

Despite economic uncertainties, the Cotswolds remains a highly attractive place to live, work, and raise families. As long as sellers price their properties appropriately and respond to market conditions, demand for well-located, well-presented homes is expected to hold steady.

Whether you’re buying, selling, or investing, the Cotswolds’ charm and desirability ensure it remains a resilient market heading into 2025.