Getting on the housing ladder and moving up the chain is a long and costly process. Trying to buy or sell when the market is depressed or, at the other extreme, when the market’s so hot there are bidding wars, can make the process more stressful.
Whether you’re a first-time buyer or a second-stepper, we explain whether now is a good time to buy a house.
This article covers:
What is happening to house prices?
Looking at the UK as a whole, the average house price is just 1% below the record highs reached in the summer of 2022, according to the Nationwide House Price Index. The average property price rose 3.7% in November 2024 from the previous year, the fastest rate of annual growth for two years.
The average property cost £286,144 in November 2024, but of course that figure masks a wide variation in prices in towns and cities across the UK.
To see average prices in your area, look at one of the leading property price data hubs from Nationwide or Halifax.
In the past two years, the market has struggled to pick up steam for several reasons:
Affordability is stretched
Most mortgages allow people to borrow four to five times their earnings. So, for many people, the maximum price they can offer on a property is capped.
Interest rates are higher
The Bank of England’s base rate is at 4.75% at the time of writing – which is close to a 15-year high. Lenders use the base rate as a guide for setting interest rates on mortgages, so the cost of borrowing to buy a home is historically high too.
Read more: Find out how much you can borrow with our mortgage repayment calculator.
Despite those factors, house prices have remained resilient because:
Demand outstrips supply
In many areas there are more buyers than there are suitable homes.
People can still afford to buy homes
Robert Gardner, chief economist at Nationwide, said that low levels of unemployment and recent growth in wages is supporting property prices and mortgage approvals.
Many first-time buyers are receiving gifts or loans of inherited wealth to help them purchase homes, even at these elevated prices. Meanwhile, home-movers have built up equity or made money from their homes through the sharp rise in property prices over the past 20 years, which means they have sufficient wealth to buy.
Read more: Will UK mortgage rates go down?
What will happen to UK house prices in the next five years?
House prices depend on a number of factors including:
- Interest rates on mortgages
- Levels of unemployment
- Wage growth
- Supply and demand in specific areas
- Changes to stamp duty, a tax on property purchases
Without a crystal ball it’s impossible to say with certainty what will happen to house prices or the economy in the coming five years.
But experts believe that property prices will be supported and rise gradually – perhaps not at the steaming pace they have in the past.
Amanda Byrne, head of mortgages at Halifax, said: “Positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Gardner said: “Providing the economy continues to recover steadily, as we expect, the underlying pace of housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
Read more: Will house prices fall in 2025?
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Is now a good time to buy a house?
You might hear people say that now is a good or bad time to buy a home, but that’s a very general statement which doesn’t take into account two important points:
- There isn’t just one UK property market
There are hundreds of micro-markets which each have their own factors driving prices up or down. Even within a single town, village or borough, some streets are more desirable than others. Properties might take ages to sell and go for below-average prices on one housing development, while there’s huge demand for homes on another development nearby.
- The best time to buy a house is personal to you
Buying a home for the first time, selling up and moving or buying an investment property are all big decisions, and not just financially. When to buy or move often depends on family circumstances, work and your future goals.
- Buying a property is a long-term decision
There’s lots of hubbub about movements in property prices from one season to the next. But small fluctuations in property values are not that relevant if you are buying a home to live in and keep for many years to come.
Read more: A simple guide to buying your first home
- You can still find bargains when the market is hot
Ideally you would buy a property at less than its market value, and this is more likely to happen when the market is slow. When properties are on the market for a while, a seller might be willing to accept a lower offer rather than hang around waiting for a better price.
But even during periods when it seems like there’s a lot of demand and houses seem to come on and go off market quickly, you may still be able to negotiate on price for the property you want. Estate agents try to give the impression of high demand, but what a property ends up going for depends on lots of factors including the seller’s circumstances.
In an ideal world, you’d buy when both house prices and mortgage rates reach a low point. But it’s unlikely you’d time the market perfectly, so you need to consider a price point for both that is comfortable for you.
Read more: The hidden costs of buying a house
There are several red flags to avoid when you’re viewing properties. They aren’t always easy to spot. Whether a house or a flat, these are issues to consider when you’re going on viewings
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Product information is provided on a non-advised basis. This means that no advice is given or implied and you are solely responsible for deciding whether the product is suitable for your needs.
What is the best time of year to buy a house?
Britain’s property market ebbs and flows throughout the year. Typically people put their homes on the market in the spring, so if you’re looking to buy it’s a good time to start the hunt. More properties available means you will be able to do plenty of viewings and get a feel for what’s on offer in your target area.
The downside of springtime is that there tend to be more buyers searching too. That means you might face competition from other buyers, which pushes up prices.
Typically, people who put their home on the market in the spring hope to have moved by the summer. The market quietens in August as everyone heads off on summer holidays, before picking up again in September.
In the autumn there may be fewer properties on the market than there were in the run-up to Easter. But people looking to buy or sell in September, October and November may be more committed than the spring house-hunters. This is because people are often keen to get their house sale or purchase completed by the end of the year.
The property market is typically quiet in August, December and January.
Read more: How to sell a house in winter
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