After a period of economic uncertainty, the UK housing market is showing signs of recovery. With more homes available, rising buyer confidence, and improved mortgage affordability, now could be an ideal time to consider a property move.
UK Housing Market in 2025: Key Trends Driving the Recovery
More Homes for Sale, More Buyers in the Market
According to the Zoopla House Price Index (May 2025), the number of homes listed for sale has increased by 13% year-on-year. This surge in supply is giving buyers more choice and helping to breathe fresh life into the market.
- Agreed sales are up 6% compared to last year,
- Buyers are negotiating deals at around 3% below asking price
- Sellers are showing more flexibility to close deals
This is great news for Armed Forces personnel who may be relocating or looking to buy their first home.
House Prices Are Rising—But at a Manageable Pace
Nationally, house prices have grown by 1.6% over the past year, with the average UK property now valued at £268,250, according to Zoopla. This moderate growth keeps homes within reach for many buyers.
Prices vary by region:
- In Northern areas like Blackburn and Belfast there’s been around 5% price growth
- Southern coastal areas, such as Bournemouth and Brighton have seen slight price declines, likely due to increased listings
- According to the Office for National Statistics, the average house price in West Northamptonshire reached £295,000 in March 2025, marking a 7.0% increase from March 2024. This growth aligns with the broader East Midlands region, which also saw a 7.0% rise during the same period.
Mortgage Rates Are Falling, Making Homes More Affordable
In May 2025, the Bank of England reduced the base rate to 4.25%, leading to lower mortgage rates across the board. According to Morningstar UK, the most competitive mortgages are now:
- Two-year fixed-rate mortgages: From 3.75%
- Five-year fixed-rate mortgages: From 3.83%
- As noted in the Guardian, some lenders are also relaxing affordability criteria, allowing buyers to borrow more
This is particularly beneficial for first-time buyers and second-steppers in the Armed Forces, who may be looking to move up the property ladder.
What’s the Outlook for the Rest of 2025?
Market analysts expect the positive momentum to continue:
- Zoopla forecasts a 5% increase in completed sales
- Average house prices are expected to rise by 2%
- The Times reports that UK house sales are at their highest level since the post-lockdown boom
This suggests that the current recovery is not just a short-term trend but part of a broader market rebound.
Is Now the Right Time to Move?
With more homes available, competitive mortgage rates, and steady price growth, the current market presents a unique opportunity for those looking to move.
Daniel Mumford, Managing Director at Grange Mortgages, says:
“With increased property listings, stable pricing, and improved mortgage affordability, there’s a unique window of opportunity for buyers and movers. The current market conditions are among the most favourable we’ve seen in recent years, making it an excellent time to consider your next property move.”
For more information on the Forces Mutual Fee-Free Mortgage Advice Service, provided by Grange Mortgages Click here