Why 2025 is a Fantastic Time to Buy Property in the UK

Natasha Jessop, New Homes Team Leader at TMT Legal Services LLP

Natasha Jessop, New Homes Team Leader at TMT Legal Services LLP, shares her views on why 2025 is a fantastic time to buy property and why it's becoming one of the most promising years in recent history.

Affordability Is Improving.

One of the biggest factors drawing Buyers back to the market is improved affordability. Mortgage rates, which surged in recent years, have started to come down. As of late 2024, average five-year fixed mortgage rates hovered around 4.5%, and market analysts suggest they’ll either hold steady or dip slightly through 2025. For Buyers, this translates into more manageable monthly payments and better long-term value.

Government Incentives Are Making a Difference.

The UK government is introducing initiatives designed to support Buyers, particularly those struggling to get on the property ladder. These measures include a Mortgage Guarantee Scheme to assist Buyers with small deposits, Energy Efficiency Grants under the 'Warm Homes Plan' for energy-efficient upgrades, and policies prioritising domestic Buyers over international investors.

New Homes Schemes.

In the UK, the government offers several incentives to support buyers of new homes. One key initiative is the First Homes scheme, which provides new-build properties at a discount of at least 30% to first-time Buyers and Key Workers. There’s also Help to Buy: Shared Ownership, allowing Buyers to purchase a share of a new home and pay rent on the remaining portion, making homeownership more affordable. Additionally, Stamp Duty relief is available for First-Time Buyers on properties up to £300,000. These schemes aim to make it easier for individuals and families to get on the property ladder.

Stable, Predictable Growth.

House prices in the UK are forecast to rise by around 3% in 2025 a modest but healthy pace. This kind of steady growth is ideal for Buyers. It provides reassurance that their investment is likely to gain value over time, without the pressure or volatility seen during housing booms.

The Market’s Proven Resilience.

If recent history has shown anything, it’s that the UK property market has the strength to weather economic turbulence. From the aftermath of Brexit to the challenges of the COVID-19 pandemic, property values have shown consistent recovery and long-term growth.

With borrowing costs becoming more manageable, targeted government support for Buyers, steady price growth, and a historically resilient market, 2025 presents a golden window of opportunity. Whether you're buying your first home or looking to invest, there’s a lot to feel optimistic about in today’s property landscape.

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