For much of 2025, onlookers were mostly quite hesitant to make any big calls on the UK housing market. Some would offer predictions of small growth or none at all for house prices, while others would cap out in the two or three per cent range over the coming years.
This was all because of the Autumn Budget. It was well known that the government would need to do something fairly drastic to fill the hole in the finances left by the last government. Raising taxes seemed inevitable, while a change to the property tax system specifically has long been needed.
Instead, for property tax, a new mansion tax came in to add to the changes to renters’ rights and second home taxation that came in prior. With the budget out of the way and the dust beginning to settle, how has the UK market shaken out as we close out 2025?
Fairly Good Going for Buyers
Particularly in the months leading up to April, there was a rush of interest in moving house. On the one hand, buyers sought to get into their new homes before the Stamp Duty changes came into play on 31 March. Equally, those with second homes sought to sell up before 1 April to avoid the new council tax premiums of up to 100 per cent.
With many landlords also looking to sell up as the Renters’ Rights Act began to form – which will come into force on 1 May 2026 – many areas saw an influx of properties hitting the market. This created a buyers’ market that will have influenced the slow growth of house prices seen throughout the year.
However, the average price of a house was said to have reached a record £299,892 in November, while reports also showed that affordability was at its best since 2015 in that month. Average incomes being higher compared to house prices has enabled more people to get into the market, as have lenders reducing rates and easing criteria.
Some Sellers Seeking Alternatives
An uptick in housing stock, price growth being fairly slow, and buyers having more bargaining power have made a less-than-ideal environment for sellers on the traditional market. For sellers looking to move or get cash in quickly, this has caused more problems than merely taking a lower-than-listed price.
In January 2025, it took, on average, 77 days to sell. That sank to 59 days by April, but after that, it continued to rise to 64 days in September. Even at the best of times this year, it took two months to secure a buyer. So, alternative methods of selling that guarantee cash, handle the process, and can pay within a short time have risen to the fore.
Now, you can sell your home for cash online. The buyers have an efficient system of sending you a free offer after you fill out a quick form, and then, if agreed, they’ll get everything in place to complete it in seven days. Hastening the process of selling and avoiding a more trying buyers’ market has helped to spur on more sales in this way.
In the years ahead, house price growth is expected to slow. The figures suggest that the average growth will dip below two per cent in the next few years, with other pressures somewhat cooling the market. This would imply that buyers would become less active, but the demand for more housing continues to be high in the UK.
It’s been a very wait-and-see kind of year for UK property, and while some buyers have revelled in the choices and bargaining power available, the state of play has persuaded some sellers to skip the open market altogether.
