2025 So Far… and What’s Still to Come for UK Homebuyers
A better year ahead for homebuyers?
After a bumpy couple of years in the housing market, there’s finally some good news for anyone looking to buy or remortgage in 2025. Experts are starting to talk about the return of stability—something the property world hasn’t seen much of lately.
No one’s expecting a dramatic boom, but we are seeing the early signs of recovery. Mortgage lending is picking up, house prices are expected to rise (gently), and interest rates may finally be heading in the right direction. It’s a cautious kind of optimism, but optimism all the same.
Mortgage lending is on the rise
One of the clearest signals that things are improving comes from UK Finance, which is forecasting that gross mortgage lending will reach £260 billion in 2025. That’s a healthy increase from £235 billion in 2024, and a sign that lenders are starting to feel more confident again.
For buyers, that could mean more choice when it comes to mortgages, as well as potentially better rates and more flexibility—especially for those with a decent deposit or equity.
Interest rates may finally be easing
Another positive development is what’s happening with interest rates. The Bank of England base rate has been the subject of many sleepless nights recently, but there’s hope that it will start to drop as inflation cools. Current predictions suggest the base rate could fall to around 4.25% by mid-year.
Some lenders are already getting ahead of the curve. Fixed mortgage rates have dipped below 4% in some cases, particularly for two- and five-year deals at lower loan-to-value levels. If this trend continues, we could see even more attractive deals emerging in the months ahead.
It’s still worth reading the small print, though—some of these low-rate deals come with chunky fees that can offset the savings. As always, having a good broker on your side (hello, that’s us!) can help you weigh up the real value of a deal.
House prices: up, but not by much
When it comes to house prices, the picture looks steady rather than spectacular—which might be just what the market needs. Property experts Savills are predicting a 4% average increase in UK house prices during 2025. That’s modest, but after the price dips and slowdowns of the past year, it’s a reassuring sign of growth returning.
What’s driving this? Lower inflation, improving mortgage affordability, and a return of buyer confidence all play a part. But location will matter more than ever—Northern cities like Manchester, Leeds and Birmingham are expected to see stronger growth than more expensive southern areas.
So, while we’re not heading back to the days of rapid price surges, we are looking at a more balanced and predictable market.
Is it a good time to buy?
If you’ve been sitting on the fence, waiting for the right moment, this could be it. With rates softening, lending increasing, and prices starting to climb again, buyers who are financially ready may find that 2025 offers a good window of opportunity.
Affordability is still tight for many, especially in the South East, but things are slowly heading in a more buyer-friendly direction. The key is to be prepared—get your finances in order, speak to a mortgage broker, and keep an eye on those emerging deals.
What about sellers?
Sellers also have reason to feel hopeful. A steadier market and returning demand could help move things along—especially for those pricing realistically. While we’re unlikely to see a frenzy of bidding wars, homes that are well presented and sensibly priced should find motivated buyers.
The calmer pace may actually work in sellers’ favour, as it allows for better planning and less stress all round.
2025 isn’t going to be a fireworks-and-fanfare kind of year for property—but it is looking a lot more settled. And after the ups and downs we’ve had, that’s something to celebrate. Whether you’re buying, selling or remortgaging, the key will be staying informed, getting good advice, and acting when the time feels right for you.
And remember—Quick Mortgages is here to help every step of the way, fee-free and friendly.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
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