The UK property market has been dominated by a persistent trend over the past year high demand coupled with limited supply. While the property market has faced its challenges, the underlying factor of strong demand has kept house prices on the rise in many areas. According to Zoopla’s recent analysis, certain regions continue to see robust buyer interest, particularly in suburban and rural locations. This demand is pushing prices upwards, especially for larger homes with more space something that’s become a priority for many buyers. As we move deeper into 2025, this trend is expected to continue as people seek properties that offer both comfort and convenience.
Mortgage rates: A stabilising factor
While mortgage rates saw some fluctuation in the past few years, the current outlook is more stable. With inflation gradually easing, experts predict that the Bank of England may keep rates steady for the foreseeable future. This is good news for buyers, as the cost of borrowing remains relatively affordable compared to historical norms. Even with a slight rise in rates, the availability of competitive mortgage deals is helping keep the market buoyant. For those ready to buy, this stability offers a level of confidence that prices will continue to climb, albeit at a more moderate pace.
Government schemes: Boosting buyer confidence
Government initiatives, like stamp duty holidays and help-to-buy schemes, have proven to be vital in keeping the property market accessible, especially for first-time buyers. These schemes continue to fuel demand, particularly in areas where properties remain relatively affordable. As we enter the second quarter of 2025, many buyers are feeling more secure in making their move due to these incentives. For anyone still uncertain about buying, these schemes provide a solid push to make that long-awaited purchase.
Regional variations: A tale of two markets
Not all parts of the UK are seeing the same level of price growth. While London and the South East have experienced more moderate increases, other areas such as the North and the Midlands are seeing steadier, but significant, growth. The shift towards working from home has influenced this regional disparity, with many buyers opting for homes outside the city hubs, where they can get more for their money. For buyers in these areas, it’s an exciting time, as their property searches offer excellent value compared to more central locations.
What’s next for the property market?
Looking ahead, 2025 is shaping up to be another positive year for house prices, albeit with a more measured pace of growth. With strong buyer demand, stabilising mortgage rates, and ongoing government support, the UK property market is in a good position. Areas outside London, in particular, will continue to see strong price appreciation as more people make the move to more spacious and affordable homes. While the market may not see the same explosive growth as in previous years, it is still an exciting time to be involved in the property sector.
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