
The UK property market in 2025 is full of mixed signals. With new government reforms, evolving buyer behaviour, regional price differences, and post-pandemic economic shifts still playing out, it’s understandable that many prospective buyers are asking: “Is now a good time to buy?”
The answer isn’t one-size-fits-all. But in this post, we’ll break down the current market dynamics, opportunities, and risks—so you can make a confident, informed decision.
🔍 What’s Going on in the Property Market Right Now?
1. Stamp Duty Changes Have Shifted Buyer Behaviour
As of April 2025, the UK government has made major changes to stamp duty. The threshold for zero tax has dropped back to £125,000 (or £300,000 for first-time buyers), with increased rates applying more quickly beyond that.
This has caused:
- A slight slowdown in demand, especially for homes priced over £400,000
- More buyers focusing on affordability and value over size or location
- Some sellers reducing asking prices to keep deals attractive
If you’re buying under £300,000 as a first-time buyer, this could still work in your favour. But for others, the stamp duty bill is something to factor in carefully.
2. Interest Rates Are Stabilising—But Still High
The Bank of England base rate currently sits at 4.25%, with lenders offering mortgage deals between 4.5% and 6%, depending on your deposit and credit history.
Although rates are lower than last year’s peak (when some deals hit 7%), borrowing is still far more expensive than it was during the 2020-2022 boom.
This means:
- Monthly repayments are higher than many buyers are used to
- Lenders are stricter with affordability checks
- Fixed-rate deals offer peace of mind, but come at a cost
However, many economists believe we’re past the peak, and interest rates could ease into 2026. If you buy now, refinancing in a couple of years may be an option to lower your payments.
3. House Prices: Slowing Growth, But Not Crashing
National house prices have stabilised. According to recent data, annual growth sits between 2–3%, but that masks huge regional variation.
- London & the South East: Flat or slightly falling prices due to affordability pressures
- North West, Midlands, and Scotland: Modest growth and strong buyer interest
- Rural & commuter areas: Still in demand due to hybrid work trends
The key message? Sellers have lost power. This is now a buyer’s market, especially if you’re chain-free, mortgage-ready, or a cash buyer.
4. Government Schemes Support First-Time Buyers
Despite market challenges, support for first-time buyers remains a priority.
The Mortgage Guarantee Scheme (extended through 2025) allows lenders to offer 95% LTV mortgages on properties up to £600,000—with a government-backed guarantee.
While these loans often come with higher interest rates, they’re helping many buyers get on the ladder without needing a huge deposit.
Other support includes:
- Shared ownership options
- Help to Build for self-builders
- Lifetime ISAs, still offering a 25% bonus for savings toward a deposit
👍 So, Is Now a Good Time to Buy?
Let’s break it down by different buyer types:
🏡 First-Time Buyers
YES, with caution.
- Prices are stabilising, giving you more room to negotiate
- Sellers are more flexible, especially with chain-free offers
- Government schemes offer financial support
However, mortgage repayments will be higher than in previous years, so make sure your monthly budget works long-term, even if rates rise again.
🧠 Tip: Focus on areas with strong local amenities, transport, and rental demand in case you decide to move and let the property in future.
🏠 Home Movers
YES, if you’re upgrading or downsizing wisely.
If you’re selling and buying, you’re trading in the same market—which can soften the impact of price fluctuations. However, be mindful of:
- Longer selling times
- Chain risks
- Stamp duty if upsizing
This is a great time to negotiate a deal on your next home if you’re flexible with timing and can present as a strong buyer.
🏢 Property Investors
Maybe—depending on your strategy.
The buy-to-let market is under pressure, with new tax rules, energy efficiency requirements, and rising interest rates all reducing profit margins.
But rental demand is soaring, especially in:
- University towns
- Regional cities (Manchester, Liverpool, Birmingham)
- South Wales and the North East
If you’re buying with cash or high equity, and focus on long-term capital growth, now could be a good time to invest at lower prices and ride the recovery wave.
🧠 Tip: HMOs (houses in multiple occupation) and rent-to-rent models are gaining popularity for yield-focused investors—but know the legal and licensing requirements.
⚠️ When Might It NOT Be a Good Time to Buy?
There are a few scenarios where waiting might be wiser:
- If you have less than a 5% deposit (higher mortgage costs will hit hard)
- If you’re relying on selling a home in a slow market
- If your employment or income situation is uncertain
- If you’re hoping for significant short-term capital gain
In these cases, you might want to pause, save more, or wait for interest rates or prices to improve in your target area.
🔮 What Could the Future Hold?
Looking ahead, here are some trends that could shape buying decisions:
- Interest rates may begin to drop in 2026 if inflation remains under control
- More new-build homes will enter the market as planning restrictions ease
- Leasehold reforms are likely to benefit flat buyers by improving ownership terms
- Digital conveyancing and property tech may eventually speed up the buying process
In short: the market is cooling but not collapsing, and many buyers are finding opportunities hidden in the uncertainty.
✅ Final Thoughts
So, is now a good time to buy property in the UK?
Yes—if you’re financially ready, have a long-term view, and do your homework. The market is more balanced, and buyers finally have room to breathe and negotiate.
However, you’ll need to be extra thorough on:
- Affordability planning
- Interest rate flexibility
- Location research
Every buyer’s situation is unique, so speak to a mortgage broker, check local market trends, and seek professional advice when needed.
Buying a home is one of the biggest financial moves you’ll ever make—make sure it works for you, not just the market.
Want a free homebuyer checklist or a personalised buying strategy? Feel free to reach out—I’d love to help you take the next step on your property journey.
About the author:
I’m Chimene—an aspiring Mortgage Advisor and dedicated Property Deal Sourcer with a real love for helping people make smart, confident decisions on their home journey.
Whether you’re buying your first flat, searching for an investment gem, or just trying to understand mortgages without the jargon—I’ve got you!I’m here to make property feel less overwhelming and more doable, one real conversation at a time. Let’s build your dream, brick by brick. 🏡✨