Pondering Points for Planning a Home Relocation
**UK Housing Market in 2025: A Buyer's Guide**
The UK housing market in 2025 is presenting a stable yet dynamic landscape for potential homebuyers. With modest price growth and improving financing conditions, this year presents an opportune time to enter the market.
Firstly, it's essential to understand that the cost of moving extends beyond the purchase price. Professionals such as surveyors, conveyancers, removal companies, and tradespeople all contribute to the overall expense. The average cost of a move in 2025 is estimated to be around £13,000.
Involving solicitors who specialize in property transactions is recommended for a smoother purchasing process, especially considering the complexities of the market and the implications of the Leasehold and Freehold Reform Act 2024. This legislation will make leases cheaper to extend and ban new leasehold houses for the most part.
The housing market is experiencing a surge in sales, reaching the highest level since 2021, according to Zoopla data. However, an incoming slump is expected, potentially making May and June quiet periods for purchases. It's advisable to avoid moving on a busy day, such as a weekend or a school holiday, to ensure a smooth transition.
House prices are rising modestly, with an average UK house price around £268,400 as of May 2025, up 1.4% over the previous year. Growth is stronger for certain property types like semi-detached houses (+2.5%) and terraced houses (+2.0%) but flat prices have slightly declined (-0.8%). Regional disparities exist, with London prices lagging national averages due to affordability constraints, while some regions like the North East have seen stronger annual growth (6.4%).
Mortgage rates have been steadily falling with the Bank of England cutting base rates to 4.25%, its lowest since 2023, and two further cuts expected by the end of 2025. This will improve mortgage affordability and buyer activity. With interest rate cuts expected to lower borrowing costs further, making financing easier later in 2025, it may be beneficial to buy sooner rather than later.
Given the expected two additional base rate cuts before year-end 2025, monitoring interest rates closely may offer an opportunity to secure more favorable mortgage terms in the near future. Because transaction volumes dropped notably around April 2025, possibly due to market uncertainty, periods of lower buyer activity might offer more negotiating power.
When considering whether to buy a new build or an existing home, it's important to weigh the overall cost and benefits of each option. Buying a new build home might offer benefits, such as government incentives for reducing carbon emissions. However, it's crucial to account for all costs associated with buying, selling, and moving.
Lastly, the timing of the purchase can impact the value received. Proper timing can help get the best value for money. For now, 2025 appears to offer better affordability and stable price growth conducive to buying within the year. However, if new stamp duty threshold changes are announced later in 2025, reassessing timing would be prudent.
Improving your understanding of the costs involved in moving beyond just the purchase price, such as home-and-garden-related expenses like renovations or home-improvement projects, could help you budget more effectively when making a decision to buy in 2025's stable yet dynamic UK housing market. Additionally, embracing a lifestyle that includes maintaining a well-kept home can help ensure you are well-prepared for the ongoing expenses of homeownership.
