Find your best local estate agent Start here
Deciding whether now is the right time to buy a house is a big decision. Should you buy now or wait? We look at all the factors to weigh up, whether you’re a first time buyer or a homeowner planning your next move.
Yes, it’s a good time to buy a house if you can afford it and you buy a home you plan to live in for several years. House prices are expected to gently trend higher in 2025, so if you buy now it may be cheaper than if you wait. Plus, some regions are experiencing a buyer’s market as there are more properties available. So buying now may mean you’re able to negotiate a better deal.
There are of course negative factors at play as well. While the rate of UK inflation has settled, the cost of living went up again in April. Globally, the Trump-slump isn’t helping confidence in global markets and people like to feel confident when they are making major purchases like buying a house. In fact, our exclusive survey carried out by Opinium this month found 37% of UK adults say they expect mortgage rates to go up over the next 12 months. This expectation outpaces those who believe rates will hold steady (25%) or fall (16%). Meanwhile, 22% say they simply don’t know, reflecting broader economic anxiety and confusion.
However, all the doom and gloom around the economy is actually clouding what is an improving mortgage market – lenders have been cutting rates amid the expectation that interest rates will be cut more frequently than previously expected due to the economic turmoil.
Plus, there is even a trend in lenders loosening their affordability criteria this year. While deciding whether now is a good time to buy a house is eminently a personal decision, read on for more analysis of factors at play.
The length of time you plan to stay in your home is important for a number of reasons including:
House prices are predicted to increase by between 2% and 4% in 2025. This house price forecast has improved since the end of last year. The Office for Budget Responsibility says in its Economic and Fiscal Outlook March 2025 that it expects house price growth of 2.8% in 2025 – an increase from its forecast in October 2024 that prices would increase an average of 1.1% in 2025.
Higher house prices are obviously not great news for first time buyers. But remember, house price forecasts are just an estimation – and they can be wrong. For example, Halifax’s house price forecast for 2024 was that prices could fall between -2% and -4%. When in fact, house prices finished 2024 up +3.8% on average.
There is also currently the potential to negotiate a good deal when buying a house. This is because in many areas it’s a buyer’s market. According to our most recent House Price Index, Zoopla says the number of homes for sale is up 11% on last year and Rightmove reports that the number of homes for sale is at a 10 year high. So if you’re considering buying a house now make sure you don’t pay more than you need to. Read useful tips in our guide How to make an offer on a house & negotiate effectively.
Mortgage rates have been falling as lenders have been cutting rates on fixed deals amid a mini-price war and rates remain lower than the highs we’ve seen in recent years. Many lenders are now offering mortgage rates on fixed deals under 4%, although the lowest rates are for those buying properties rather than remortgaging in many cases and for those with the biggest deposits.
These mortgage rate reductions come as more frequent interest rates cuts by the Bank of England are expected this year, amid global economic turmoil. And the mortgage rate forecast is for rates to continue to fall over 2025. If mortgage rates are lower, the cost of your monthly mortgage payments will be lower too.
Using the example of taking out a £200,000 mortgage over 30 years, here’s how much your repayments would be in your initial term using the average 2 year fixed rate mortgage in May 2023 vs the average fixed rate mortgage in May 2025.
| Amount borrowed | Monthly mortgage payment at May 2023’s average rate of 5.26% on a 2 year fix | Monthly mortgage payment at May 2025’s average rate of 4.71% on a 2 year fix | Monthly saving if you remortgage |
| £200,000 | £1,106 | £1,038 | £68 |
The mortgage rate forecast is for rates to continue to fall so you may be tempted to put off buying a house until mortgage rates reduce further. But remember:
Whether now is a good time to buy or not for you will depend on how much you can afford. Get a no-obligation call with fee-free mortgage brokers L&C to see how much you can afford.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
Affordability is still a major barrier, especially for first time buyers. So the numbers will need to stack up for now to be a good time for you to buy a house.
You’ll usually need at least a 5% deposit to buy a house, although the bigger your deposit, the better rates you’ll usually get access to. It’s even possible to get 100% mortgages, which mean you can buy a house with no deposit, although you’ll need to meet certain criteria.
If you’re tempted to delay buying a house in order to save a bigger deposit and therefore hopefully get access to better mortgage rates, be aware that this comes with risks. For example, there’s no guarantee the mortgage rate available on a 10% deposit mortgage next year will be lower than the best mortgage rate on a 5% deposit mortgage today.
So as a starting point, speak to a mortgage broker about what your options are based on your current circumstances and then you can decide what’s best for you.
Banks will usually lend up to 4.5 times your salary. So if you want to buy a £250,000 house with a 5% deposit of £12,500, and you’re buying by yourself you would typically need to earn around £53,000. Our how much can I borrow calculator is a good place to start to see how much you can afford to borrow for a mortgage based on your income.
However, some lenders will lend you more. For example, Nationwide allows first time buyers to borrow up to 6 x their income with lender’s Helping Hand mortgage. Read more in our guide to the Best mortgage lenders.
Get fee-free advice from mortgage brokers L&C and start the process online now or over the phone.
Donald Trump’s announcement of so-called reciprocal tariffs on 2 April 2025 sent shockwaves through the global trading system and financial markets. While his 90-day pause on some of these tariffs on 9 April saw stock markets rally, most economists think that even after the pause, this represents a major shift in US trade policy which will harm the global economy.
And while mortgage rates in the UK have gone down due to the predictions the Bank of England will cut interest rates more frequently, the impact on what this means for the UK economy and housing market is as yet unknown.
There isn’t one UK property market: The housing market can vary considerably around the UK but even within the same town, some areas or even streets are more desirable than others. So become an expert in your local housing market.
| Pros | Cons |
|---|---|
| Buying a house now means you may buy before house prices rise further | Affordability is still an issue for many buyers |
| Some areas are experiencing a buyer’s market, so you may negotiate a good deal. | Mortgage rates are expected to fall further so you may get a cheaper mortgage rate if you wait |
| Mortgage rates are lower than recent highs | It’s unclear what the impact of global uncertainty on the UK housing market and mortgage rates will be. |
Experts’ predictions range from house price growth of between 2% and 4% in 2025. For more detailed analysis read more in our guide on House price predictions 2025.
However, what happens to house prices will depend on a number of factors including:
Spring is considered the best time to buy a house because there are usually more homes on the market. However, this Spring may pan out slightly differently due to stamp duty changes that came into effect on 1 April, increasing the stamp duty bill for many buyers. So the market may be quieter than usual from April onwards as a result.
But don’t get fixated on the ‘best’ or ‘worst’ times of the year to buy. If you’re house hunting, keep looking. Your dream home might come on the market in the depths of winter and if there are fewer buyers looking it boosts your chances of getting the property and at a good price.
To decide whether to rent or buy a house, you need to consider what’s happening in the rental market. According to the Homelet Rental Index, the average monthly rent in the UK was £1,275 in February 2025, an increase of 1.0% compared to the previous year.
If you’re paying a fortune on rent it may be tricky to save up enough to buy a house. But it is possible to buy a house with a small deposit. Read our guide on Government schemes to help you buy a home
Yes. If you want to sell your house, whether that’s because you need to relocate or need to buy a bigger house, don’t let speculation about property prices put you off taking action. Read more in our guide Should I sell my house now?
Get fee-free advice from mortgage brokers L&C and start the process online now or over the phone.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
Buying a house and saving for retirement at the same time can be difficult so you might be tempted to stop your pensions contributions until you buy your first home. But this may be something you end up regretting. You may find it useful to speak to an independent financial advisor about about your finances including your pension.
If you want to start a business, bear in mind it can be more difficult to get a mortgage if you’re self-employed, until you can show at least two years worth of accounts. Find more information in our guide on self-employed mortgages.
There are a number of fees when buying a home, including legal fees and a survey, which can add more than 10% to the total bill. So when you’re looking at is now a good time to buy a house make sure you can afford to cover all the costs you’ll need to pay. Find out more in our guide on The costs of buying a house.
The Right to Buy government scheme gives people the chance to buy the council house they are currently renting at a discounted rate. However, under rules that came into force in November 2024, the maximum discounts available have been substantially reduced. Read more in our guide Right to Buy explained
If you’re asking is now a good time to buy a house and you’re a first time buyer you’re probably asking what is the best type of mortgage too. Many first time buyers choose fixed rate mortgages so they have security of knowing how much their repayments will be each month.
While other first time buyers take out variable rate deals. If you’re asking is now a good time to buy a house it’s vital that you choose the best mortgage for you. And the quickest and easiest way to do this is to speak to a fee-free mortgage broker who will lay out all your options for you.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Seopa Ltd, for home insurance, authorised and regulated by the Financial Conduct Authority (FCA FRN: 313860).
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
