📊 Will house prices crash or climb in 2025? With mortgage rates easing, rents soaring, and the economy teetering, the UK housing market is at a crossroads.
In this video, I break down the latest market data from:
✅ Propertymark Housing Insight Report
✅ RICS Market Update
✅ Rightmove, Nationwide & Halifax House Price Indexes
We’ll cover:
– Where house prices are heading
– What’s happening with buyer demand and supply
– How rents and mortgage rates are impacting the market
And if you’re new here — I’m William Gale, founder of British Homebuyers and British Homesellers. I’ve overseen over 14,000 property transactions worth £4.2 billion. My goal? To cut through the noise and give you the real story behind UK property.
👇 Need help with property? Check out these resources:
🏡 Want me to buy your house? ► https://britishhomebuyers.co.uk/
🔑 Want me to sell your house? ► https://britishhomesellers.co.uk/
💰 Need mortgage/solicitor help? ► https://www.britishhomegroup.co.uk/
💼 Want to start your own property business? ► https://britishhomesellers.co.uk/franchise/
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💬 Got questions or thoughts on the market? Drop a comment — I reply to every single one.
#ukhouseprices #propertymarket2025 #ukpropertymarketupdate #housepricecrash #ukhousingcrisis #firsttimebuyer #buytolet #rentinginuk #interestrates #recession #houseprices
will UK house prices rise or fall that’s the question everyone’s asking and in today’s video I’m breaking down the latest market data to answer it because despite rising aras affordability issues and political upheaval house prices haven’t crashed yet so what’s really going on here well today I’m using fresh insights from the latest property marks housing insight report the latest Rick’s market update and the latest Right Move Nationwide and Halifax House Price Indexes and in case you’re wondering why the hell you should listen to me well I spent since 2013 building a UK-wide home buying company British Home Buyers a nationwide estate agency British Home Sellers that between them have dealt with over 14,000 transactions totaling about 4.2 billion pounds of property so look them up and take it from me this year is a big year ahead so let’s start with the big picture here the Bank of England base um base rate drops from 4.75% to 4.5% the next rate change is May the 8th and I’d be shocked if it doesn’t drop to at least 4.25% even 4% dependent on how the Trump tariff situation plays out inflation is now at 2.8% 8% but when you include housing costs so CPIH it’s still at 7 12% and GDP fell by.1% in January but it is estimated to have grown half a percent in the latest February figures that have just come out so while the headlines say inflation is easing at 2.8% that’s actually quite deceptive because it avoids most people’s biggest costs their homes in fact households are still seeing inflation at 7 and a half% when you add in housing costs when you look at CPIH rather than the usual CPI that government loves focusing on so you can see housing costs is really what is making us all poorer when you consider average wages have gone up 5 to 6% and with council tax increasing about 5% across the UK through this year unless interest rates begin to drop that CPIH is only going to get worse in fact right now 32% of UK adults say they find it very or somewhat difficult to pay rent or cover their mortgages right now despite this mortgage arers have stayed static but the pressure is still real out there so let’s talk house prices the UK the average UK home now costs 269,000 up slightly month- on month but when you adjust it for inflation prices are basically flat what’s more interesting is the sales activity uk residential transactions were up 20% in February compared to the same time last year that means despite high rates and economic uncertainty demand has bounced back but the caveat to this is buyers have been rushing to beat the stamp duty increase that came April the 1st so without question that has given the property market a sugar rush of activity early this year so don’t look at that 20% increase and get too excited about what the future may hold because buyer registrations per branch have dipped to 81 but viewing activity has been rising and positively mortgage approvals and gross lending figures are climbing as you can see here which is really positive to see from what I’m seeing in my business deals are being done and confidence is returning as of end of March we’re actually tracking 33% ahead of this time last year on our sales figures but the sales market is one thing what’s the rental market doing because that can affect house prices the higher the rents get the more motivation there is for renters trying to jump and become property owners well the rental market is still redhot there are 10 applicants per rental property on average rents are up 8.1% yearonear across the UK landlords are listing properties to rent but not fast enough to meet demand which is the biggest factor to rents increasing and while tenant affordability is tightening rental are keeping towards 2% of properties on the market and although void periods between tenencies has increased a little as you can see here it’s still within the expected ranges currently sitting at just 3 weeks so it’s just not likely rents are going to do anything but go up which is without doubt going to keep a degree of demand from renters trying to become owners but what is happening with the supply of property coming to the market right now as we all know prices are set by demand and supply so supply matters just as much as the demand for property so is supply improving well average stock well the average stock per estate agency branch is 59 homes increasing you know as you can see increasing from the last few months but broadly the same as what we saw this time last year my agency British Home Sellers currently hasif about 555 properties on the market spread all over England and Wales uh and we’ve seen quite a big increase over the last 12 months new listings are ticking up 10.7 properties per branch in February so increasing on previous months but as you can see broadly in line with the average and market appraisals are seasonably stable so the point of looking at these metrics is we’re not seeing mass panic sales if anything sellers are generally selling at volumes you’d ordinarily expect but I think what shocks most people I speak to is right now only 9% of properties are achieving asking price at the moment the vast vast majority are selling below the asking price so although properties are clearly selling a right move marketing price is more often than not more than what the property properly sold for the thing that is certainly not helping the efficiency of the property market right now is although completion times are improving slowly dropping from that painful 17week average you can see over the decade it is something that has been progressively getting worse and worse so it’s pretty clear right now that buyers are adjusting to higher mortgage rates and as fixed rate deals improve many are going to be making their move this certainly isn’t a booming market but it’s not a bust market either here’s what I think we’ll see from here house prices will stay flat or gently rise rent increases will continue especially with more and more landlords exiting and fewer homes being available interest rates will trend down improving buyer sentiment but affordability is still broken and until we get serious about housing supply we’ll keep seeing the same imbalance for years to come what about where you live are homes selling fast or slowly is rent rising or dropping drop your thoughts in the comments below i’ll reply to all of them and if you got value from this video a like and subscribe would mean a lot as it helps more and more people see this video see the real story behind the property market right now i’ll see you in the next video up
29 Comments
Really interesting overview. A breakdown of regional data and a deep dive into capital growth (or not) in cheaper BTL housing markets (e.g., in the North West or North East) would be interesting to hear about. Thanks!
Brilliant channel
I think the UK average sale price is 18% lower than the asking price.
The market has been like that since 2021 or so. When do you think it might see better days? I really dont want to sell in this trash market😂
Waiting for further drop 😅
followed. first video i watch, good content. property market still going forward in my area. question is, how can prices be expected to fall when rates are currently high and allegedly there are a lot of ppl waiting to come down to get on the property ladder. additionally, banks relaxing lending criteria also leads me to believe house prices havent topped.
UK housing market can only go one way which is up and up and up
Another good video, house prices are dropping in my area (south coast) but we were in a massive bubble after race for space in Covid.
I think many city folk are returning as the quiet seaside village vibe isn’t all that and WFH is starting to end.
Local EA are saying people are selling at loss to leave even after spending big money on new kitchens etc.
Added to that LL are selling and holiday let owners are selling ( I know as I’m one of them)
However I agree that house prices won’t drop far and if anything will stay flat but inflation will be “the drop” it’s just hidden from people that don’t understand it
Tl;dr I have no idea same as everyone else. It’s a lottery but unless wages rise I don’t know him much more people can afford to pay relative to wages and above inflation
Only way the house prices will go down if all asylum seekers are sent back,And corrupt politicians money 🤑 is seized, corrupt politicians are bringing billions of pounds 💷 and are buying properties which is causing problems inth housing sector.so the government is totally silent 😢 why
Been living in the UK I've never seen drop in the housing price its a joke.
House prices always go up they are the best investment you can do, ,they slow down sometimes ,unless we have a world war ,and with putin in his middle age crisis, it’s possible, Ps the fact that I put putin in this comment just think of all those CIA agents looking at your post, today,
What will the impeding civil unrest/war and everyone with money leaving do to the market?
Hello? Actual sold prices have already dropped
typo your, my house is worth 10p to me but its mine… Cohldn't care less
Prices are going to continue to rise.
I work in the development industry, we're still selling property, costs are still going up as well as taxes and legislation from gov.
If rates come down you'll see prices rise 40-50% over the next 5 years.
I've always thought that the main driver for insane house prices is low supply and high demand. The largest generation the UK ever produced (Boomers) is still taking up all the family sized homes and won't downsize so demand remains high and supply is low. Think about it, anyone with even the poorest paid job could just go and buy a house back in the 80s, it was easy, they were cheap and affordable, often to the single wage ratio. The older generation then, were mostly still in social housing so there was plenty of supply. Now, you both have to be earning some serious money (I mean well above NMW) if you want to buy even a 3 bed ex council house on a main road and have atleast one child. The idea of "the property ladder" having more than that first rung is rapidly decreasing.
I'm a homebuyer in temporary rental who's already sold the only property I've ever owned (which I couldn't buy until I was 58!). Yes, I'm a 'boomer' too but not a stereotypical one. I AM looking to downsize (which in my case means from a 2 bed bungalow to a 1 bed flat …) There's no lack of these in my area (Bath) particularly as I'm seeing landlords of student- and holiday-lets selling up in droves which is good news for me. My interest is in the sold price versus asking price issue. Someone has mentioned an average 18% discrepancy between these two figures … My question is, do I wait for the (clearly overvalued) AP of the flat I'm interested in (vendor a would-be ex-landlord) to drop? – or do I chance my arm and go straight in, as a cash buyer, with what once would have been called 'a cheeky offer' at say 10% or even 12.5% below AP? I find your videos informative and helpful, thank you.
It's a different story in different parts of the UK. In the SW it's a very tough market. Some properties are selling at less than people paid at the covid madness.
They'll rise gently, in line with inflation.
For a while… but eventually, another boom.
My house just been the same price maybe last 4 years ,
but like you said the government didn't really let the market control the prices constantly pumping it up with "help2buy" stamp duty holidays etc
This correction we are going through is welcome and long over due
In March 2025, the number of mortgage approvals for house purchases in the UK was 64,309, a 4% increase compared to March 2024, but a 1% decrease from February 2025,
Over 60’s own 56% of all Uk properties. Around 30% of adult children live at home. So then what will happen to the other 70% of that 56% when all those above 60’s go in care homes and or pass way. House prices will never be the same again.
The market will end up flooded with more empty properties than buyers. And let’s not forget the older a property higher maintenance costs. All those unwanted empty properties will go in to decline. The average property will crumble after 80-100 years if not properly maintained.
No bubble last forever. Both the vintage car and high end watches market have collapse. Keep good eye on unemployment numbers going forward. People
Lose their jobs and can’t find another will be quick to hand their keys back to their mortgages provides. I witness it all before back in 1990’s.
So if I had to guess the cr#sh ahead. Come September earning season will be a blood bath across the stock market. Historically six months after a stock market cr#sh the housing market will collapse. If for no other reason the housing market will fall in sympathy to the stock market.
Therefore April 2026 🤔
I predict come 2028 whole world will be on sale. Those will plenty of liquidity will reap the rewards. Will be the sale of the century 👍
It’s all over sixteen year boom – been biggest bull run and boom in living memory. Now get ready for the mother of all recessions, not seen since the 1980’s.
There are three guarantees in life. Death taxes and cycles. Economics works in boom bust cycles.
When everyone else’s is being greedy be fearful and when everyone else is fearful then be greedy. Warren buffet..
When the beast gets hungry then only way you tame the greed is through a recession and higher unemployment..