UK Housing Market in 2025: Buyers Gain Leverage as Mortgage Rates Decline

Experts predict modest price growth, increased transactions, and challenges from stamp duty changes and economic uncertainty.

The UK housing market is expected to favor buyers in 2025, with increased negotiating power due to high property availability and declining mortgage rates.
House price growth is forecasted to range between 0-4% across various regions, with faster growth anticipated in London and the South East compared to northern and rural areas.
The end of stamp duty concessions on April 1 is prompting a surge in first-time buyer activity early in the year, particularly in high-cost areas like London and the South East.
Falling mortgage rates, projected to reach around 4% by the end of 2025, are improving affordability but may still challenge buyers needing larger deposits in expensive regions.
Rental prices are expected to rise by 4% in 2025 due to persistent supply shortages, with the strongest growth in more affordable markets in the North and Midlands.