is it right time to buy house in uk
Buying a house in the UK right now could be a smart move. Historical data shows that the property market has consistently grown over time, even during periods of uncertainty. With house prices rising steadily and mortgage rates beginning to ease, this moment offers a favorable window for buyers to secure a property before costs climb further.
K E Y T A K E A W A Y S
Steady Price Growth
House prices are rising manageable, making now a good time to invest before costs increase. Historical trends show the UK market is resilient.
Falling Mortgage Rates
Mortgage rates are gradually decreasing, with predictions of reaching around 4% in 2025. This could lower borrowing costs for buyers.
Increased Housing Supply.
More properties offer buyers greater choice and better negotiating opportunities, especially outside high-demand cities.
Strong Rental Market
The rental market is thriving for investors, with high demand and attractive yields, particularly in student-heavy and affordable regions.
Buying a house is a big decision. Many people wonder if now is the best time to invest in UK property. Let’s break it down, plain and simple.
The UK housing market has seen moderate price growth in recent years. According to the Office for National Statistics, the average house price in September 2024 was £297,524. That’s a 4% increase compared to the year before. While prices are not skyrocketing, they are climbing steadily.
If you’re waiting for a dramatic drop in prices, you might be barking up the wrong tree. Historically, the UK market has proven resilient even during economic uncertainty. Waiting too long might mean paying more later.
After a turbulent 2023, mortgage rates have started to stabilize. The average two-year fixed rate in late 2024 was around 5.08%, down from the highs earlier in the year. Experts predict rates could drop further in 2025, settling closer to 4%.
Lower rates mean cheaper borrowing costs. But don’t expect them to return to the rock-bottom levels of the early 2010s. If you secure a competitive rate now, you might save more in the long run than gambling on future dips.
The number of homes for sale has increased slightly. This is good news for buyers. More choice means less competition, giving you a better chance to negotiate. However, popular areas like London, Manchester, and Sheffield still see high demand.
If you’re flexible about location, you could snag a deal in areas like the North East or Wales, where prices remain relatively affordable. As my friend once said, “It’s not where you live; it’s how you live.”
Stamp duty rates are set to rise in April 2025 for some buyers. If you’re purchasing a property worth over £250,000, you may want to act before the changes kick in. For first-time buyers, the current threshold of £425,000 still offers breathing room.
Additionally, some local councils offer incentives for buying eco-friendly homes. These small perks can add up, making now an opportune moment for the right buyer.
If you’re considering buy-to-let, the UK rental market remains strong. Demand for rentals is high, with average rents hitting £1,278 per month in 2024. Cities with large student populations, like Leeds and Birmingham, offer stable rental yields.
Landlords, however, should be aware of stricter regulations coming into play. These include energy efficiency standards and caps on rent increases in some areas. Staying informed can help you make smart choices.
Buying a house in the UK depends on your circumstances. If you’ve saved a solid deposit and found a suitable property, now might be the right time. With mortgage rates softening and supply improving, there’s less pressure in the market than before.
However, if your finances are shaky or you’re not ready for long-term commitments, it might be wise to wait. Remember, “Don’t bite off more than you can chew.”
Average House Price in the UK. Source Halifax HPI.
House Price Index. Source: Statista ©
At Varso Invest, we make the process even easier for investors. Our team specializes in finding the best deals on the market, ensuring you get maximum value for your investment. We assist with due diligence, comprehensive property searches, and price negotiations, helping you navigate the process with confidence and ease. Whether you’re a first-time buyer or an experienced investor, our expertise ensures a seamless and rewarding experience.
Access our portfolio of over £350M worth of pre-sourced, off-market investment properties, and we’ll show you how to generate £5k+ a month.
| Region | 2025 | 2026 | 2027 | 2028 | 2029 | 5-Year Growth (%) |
|---|---|---|---|---|---|---|
| North West | 5.0% | 7.0% | 6.5% | 4.5% | 3.5% | 29.4% |
| North East | 5.0% | 6.5% | 6.0% | 4.5% | 3.5% | 28.2% |
| Yorkshire and The Humber | 5.0% | 6.5% | 6.0% | 4.5% | 3.5% | 28.2% |
| West Midlands | 4.5% | 6.0% | 6.0% | 4.5% | 3.0% | 26.4% |
| Scotland | 5.0% | 6.0% | 5.5% | 4.0% | 3.0% | 25.8% |
| Wales | 3.5% | 5.5% | 6.0% | 4.5% | 3.5% | 25.2% |
| East Midlands | 4.0% | 5.5% | 5.5% | 4.5% | 3.0% | 24.6% |
| UK (Overall) | 4.0% | 5.5% | 5.0% | 4.0% | 3.0% | 23.4% |
| South West | 2.5% | 5.5% | 5.0% | 4.0% | 3.0% | 21.6% |
| East of England | 2.5% | 5.0% | 4.5% | 3.5% | 3.0% | 19.9% |
| South East | 3.0% | 4.0% | 3.5% | 3.5% | 2.5% | 17.6% |
| London | 3.0% | 4.0% | 3.5% | 3.0% | 2.5% | 17.1% |
The UK property market isn’t a one-size-fits-all scenario. It’s about timing, preparation, and a bit of luck. If you’re ready to take the plunge, do your homework. Research local markets, compare mortgage deals, and keep an eye on government policies.
In the words of a wise homeowner, “The best time to buy a house was five years ago. The second-best time is now.”
Access our portfolio of over £350M worth of pre-sourced, off-market investment properties, and we’ll show you how to generate £5k+ a month.
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