UK Property Market Shifts Towards Buyers as House Price Growth Eases
The UK property market now favors buyers. House prices grow slower. Zoopla’s House Price Index shows that UK home prices grew by 1.8% in February 2025. This rate falls from 1.9% in January. The average UK home now costs £267,500. This sum is £4,750 higher than the price at the same time last year.
Factors Contributing to the Changes
House price growth slows because more homes are for sale. There are 11% more properties listed than a year ago. Sales, however, rise by only 5%. Estate agents list 33 homes on average now, compared to 29 last year. The spring season may add more listings in March, April, and May, since these months usually account for about 30% of the yearly property list.
Buyers face some hurdles in getting loans. Static mortgage rates now sit at 4.4% for a five-year fixed mortgage. This rate is a bit higher than the 4% seen at the end of 2024. This change affects how much buyers can borrow and makes buying harder for many.
The reintroduction of higher stamp duty from April 2025 adds more cost. About 80% of homeowners and 40% of first-time buyers will pay more on purchases. This extra cost may steer their decisions. These shifts change the property scene. The market now helps buyers, but they must plan their finance with care.
An Increased Buyer Advantage
The power in the market now leans toward buyers. Investors, especially those keen on House in Multiple Occupation (HMO), must change their plans. More properties give buyers more choice. Still, mortgage rates and stamp duty costs require careful money planning.
Investors in HMO houses should watch local rent trends. More properties may keep rent low or cause a slight drop in prices. On the other hand, the steady need for rental homes in cities brings a safe path for some investors.
Conclusion
To sum up, the UK property market now serves buyers as house prices slow down. More houses for sale, along with rising loan rates and higher stamp duty, mean that buyers and investors must plan their moves with care. Knowing how these parts connect will help in choosing homes or HMOs in the near future.
Further Reading
For more detailed insights, analysts and potential investors may consult the following resources:
- Zoopla’s House Price Index: Zoopla
- Current mortgage rates overview: MoneySavingExpert
- Stamp duty rates for property transactions: GOV.UK – Stamp Duty
Staying informed and checking details can help buyers and investors to decide well in line with their money goals.
Disclaimer: This article has been generated by AI based on the latest news from Google News sources. While we strive for accuracy, we recommend verifying key details from official reports.
