Is It Still Worth Investing in a House in the UK in 2025?
You are not alone if you find yourself wondering if it is time to invest in a house in the UK. With rising interest rates, volatile house prices, and economic uncertainty, many first-time buyers and upgraders are wondering if 2025 is the year to step onto the property ladder, or wait. At Oportfolio Mortgages, we’ve walked hundreds of clients through market fluctuations and made sound decisions. Here’s what you need to know if you’re planning to buy a home in 2025.
Buying a Home (UK 2025)
The UK property market in early 2025 is showing signs of stabilisation, following two years of turbulence. From the latest news from Rightmove and Zoopla:
- House price growth is slowing, but not imploding
- Buyers are getting more careful but remain active
- Local property hotspots (such as South West London) are still competitive
Mortgage rates of interest, which were at a peak in 2023–24, have now begun to fall steadily. Though still above the ultra-low levels of 2021, fixed-rate products are once again available, particularly for buyers with deposits between 5–10%.
Is It Less Expensive to Buy Rather Than Rent in 2025?
In the majority of the UK, especially London, monthly mortgage payments are now level with or less than rent. While landlords increase rents, some first-time buyers find that buying offers longer-term stability.
Example: A £300,000 house with a 5% deposit and a fixed-rate mortgage can be about £1,400/month, compared to an average London rent for a 1-bed flat over £1,700.
Why It May Still Be Worth Buying in 2025
- You’re building equity, not funding someone else’s property
- Fixed mortgage rates give you the assurance, even in uncertain times
- Government schemes still support low-deposit buyers
- There is less competition in the market than during boom years
- House prices will probably rise again towards the end of 2025 or 2026, so this is a buying window
When It Might Be Best to Wait
Purchasing might not be an option for you if:
- You anticipate moving once again in 1–2 years
- You have insecure income or job insecurity
- You’re currently unable to qualify for a mortgage
In these situations, a discussion with a mortgage advisor can still assist you in preparing.
It’s still a good plan to buy a home in 2025, if it is the right plan for your situation. Preparation is the secret. Our team at Oportfolio Mortgages offer free consultations to make you realize your options, improve your fit, and find the right lender, even with a smaller deposit. Buying a house UK 2025? Let’s begin? Contact our team now.
