UK Housing & Mortgage Market 2025: What Buyers Need to Know
UK Housing & Mortgage Market 2025: What Buyers Need to Know
UK Housing & Mortgage Market Forecast 2025
What’s happening with house prices and mortgages this year?
House Prices: What to Expect
- Modest Growth: UK house prices are expected to rise by 2–4% in 2025, following a flat or slightly declining market in 2024.
- Regional Variations: London and the Southeast could see slightly faster growth due to increasing demand, while northern regions may experience slower, more stable price changes.
- Stamp Duty Changes: With stamp duty rising from April 2025, buyers may rush to complete purchases early in the year, potentially driving a short-term price increase before the market stabilizes.
Mortgage Rates & Lending Trends
- Falling Mortgage Rates: Interest rates are forecasted to gradually decrease, with some fixed-rate mortgages already dropping below 4%.
- More Mortgage Approvals: Lending activity is set to increase by around 10%, as lower rates improve affordability and boost demand.
- First-Time Buyer Support: 40% of first-time buyers will still rely on financial help from family, particularly in high-cost areas like London.
Key Takeaways for Buyers
- ? Buying Early in 2025? Take advantage of lower mortgage rates and complete your purchase before the stamp duty increase.
- ? Waiting Until Late 2025? Mortgage rates might drop further, but house prices may rise slightly, making affordability a key factor.
Need Expert Advice?
Not sure when to buy? Contact us today on 01392 927327 or fill out our enquiry form for expert guidance on finding the best mortgage deals in 2025.
