Farnborough Property Market Forecast for 2025
As your local property experts in Farnborough, we’re here to provide insights and our predictions into the anticipated trends for 2025. From house prices and rental market dynamics to tax and legislative changes, this guide is designed to help you make informed decisions about your property journey.
House Prices in Farnborough
Farnborough remains a desirable location for buyers and tenants due to its excellent transport links, thriving employment opportunities, and a blend of urban and suburban living. The town’s appeal is bolstered by its close proximity to major business hubs, such as Farnborough Business Park, and exceptional connectivity via Farnborough Main station, offering fast trains to London Waterloo in under 37 minutes and Reading, Guildford and Gatwick Airport via Farnborough North Train Station.
In 2025, Farnborough’s house prices are expected to grow by 3-4%, consistent with national trends. Current data on Rightmove shows the average property price in Farnborough over the last year was approximately £364,939, reflecting steady demand across the market.
- Detached properties: £566,708
- Semi-detached properties: £410,823
- Terraced homes: £340,192
- Flats and maisonettes: £203,628
Ongoing local developments, including the expansion of Farnborough Business Park and regeneration in the town centre, are likely to maintain this upward trajectory. By the end of 2025, average house prices in Farnborough are projected to rise to between £375,000 and £380,000.
Impact of new Stamp Duty Land Tax rates
New Stamp Duty Land Tax (SDLT) threshold rates are set to take effect on 1st April 2025, this creates a strong financial incentive, especially for first time buyers, to act fast in the year rather than later. As an example, a first-time buyer purchasing a £500,000 property before April would pay £3,750 in SDLT. Completing on your purchase in April and beyond will increase the tax to £10,000. People considering selling may seize this opportunity to sell to motivated buyers and could lead to a temporary increase in available properties for sale during the first quarter of 2025.
However, with strong demand, particularly in the three bedroom market place in the sought-after areas like South Farnborough, Southwood, North Camp, Empress Park and Farnborough Park, properties are likely to sell quickly and at competitive prices.
If you’re planning to buy, sell, or let in 2025, our team is ready to help you make the most of these opportunities.
Rental Market in Farnborough
The rental market in Farnborough continues to thrive, driven by demand from professionals working in the aerospace, technology, and defence sectors. Families are also drawn to Farnborough for its excellent schools and access to green spaces like Queen Elizabeth Park and Frimley Lodge Park.
Rental prices are forecast to rise by 4-5% in 2025. The current average rent for a two-bedroom property is around £1,300 per month, which could increase to £1,350 - £1,400 by the end of the year.
Recent changes to stamp duty thresholds and stricter landlord regulations may reduce the number of rental properties entering the market, creating a supply shortage. For landlords, this presents a unique opportunity to achieve higher rental yields. If you’re a landlord navigating these legislative changes, our team is here to provide expert advice and tailored support.
Interest Rate Predictions for 2025
The Bank of England is expected to gradually lower interest rates throughout 2025, slightly slower than expected due to a small rise in inflation after the Budget 2024. Market pricing implies the Bank Rate will fall to about 3.75% by the end of 2025. These rates are slightly lower than the highs of 2023, offering improved affordability for buyers and providing an opportunity for landlords to secure competitive mortgage rates. Stable interest rates are likely to boost buyer confidence and support steady growth in both the sales and rental markets.
Tenant Affordability in Farnborough
Farnborough offers tenants affordability compared to nearby premium towns like Fleet and Camberley while maintaining excellent transport links and strong local employment opportunities. However, with rents on the rise, tenants are prioritising properties with energy-efficient features to manage their living costs.
Landlords could consider proposed regulations requiring higher EPC (Energy Performance Certificate) ratings for rental properties. While the current minimum is an ‘E’ rating, proposed changes may require properties to achieve a ‘C’ rating by 2030.
Landlords who invest in energy-efficient improvements, such as double glazing, modern heating systems, and improved insulation, will not only attract high-quality tenants but also future-proof their properties to meet regulatory requirements. These upgrades can enhance rental income, reduce vacancies, and boost property value over time.
Investment Outlook for Landlords
Farnborough presents a stable and attractive investment opportunity in 2025. The town’s growing employment hubs, excellent transport links, and consistent rental demand ensure steady returns for landlords.
By maintaining high property standards and staying ahead of regulatory changes, landlords can maximise their rental yields and safeguard their investments. Whether you’re looking to expand your portfolio or enhance your existing properties, our team is here to provide expert advice tailored to the Farnborough market.
The Renters (Reform) Bill and its Impact
A key development shaping the rental market in 2025 is the Renters (Reform) Bill, which aims to improve tenant rights and introduce new requirements for landlords. This includes:
- Abolishing Section 21 "no-fault" evictions, providing tenants with greater security.
- Implementing stronger grounds for landlords to reclaim their property, ensuring fair treatment.
- Introducing a new property portal to increase transparency about landlord compliance.
- Applying stricter requirements for housing standards and repairs.
For Farnborough landlords, this legislation brings both challenges and opportunities. Landlords will need to adapt to the increased focus on tenant rights and ensure their properties meet all regulatory requirements. Prospect’s expert team is ready to help landlords navigate these changes, ensuring compliance while maximising rental yields.
Conclusion
Farnborough’s property market in 2025 is poised for steady growth, supported by strong demand, ongoing developments, and a thriving rental market. The town’s balance of excellent connectivity, green spaces, and local amenities makes it a top choice for buyers, tenants, and investors alike.
At Prospect, we are committed to helping you achieve your property goals with personalised advice and local expertise. Whether you’re buying, selling, or letting, our team is here to guide you every step of the way.
Contact us today to make 2025 a successful year for your property journey!
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