Housing market sees the largest yearly increase since 2022 in terms of prices.
The UK housing market is bracing for a period of minimal growth in the autumn months of 2025, according to recent predictions. House price growth is expected to be around 1-2%, a significant slowdown from the 4% growth forecast earlier this year.
Amanda Bryden, head of mortgages at Halifax, attributes the revitalization of the housing market to falling mortgage rates. However, the market shows signs of weakness and subdued buyer demand. Uncertainty related to the Autumn Budget and mortgage affordability are factors dampening growth.
Despite the slowdown, some long-term optimism remains. Savills expects house prices could grow by around 24.5% over the next five years to 2029.
In the meantime, the growing number of private individuals are opting to invest in property debt. ASK Partners, a company aimed at offering opportunities for this growing market, aims to navigate a changing market with flexibility. Their strategy involves supporting borrowers who understand their product and are looking at prime locations for investment.
The typical home in Greater London is worth £536,000, with the average home price in the UK now £292,505, the highest since August 2022. Year-on-year house prices have increased by 4.3%, the strongest growth since November 2022. In Greater London, the average house price has risen by 1.5% over the last 12 months.
However, house price growth varies across the country. Halifax figures indicate that prices in Eastern England have only increased by 0.3%. The latest mortgage approval figures are at their highest level in almost two years, but the market seems to be showing signs of resilience rather than a boom.
The strategy of ASK Partners is to bolster developers' initiatives with a flexible underwriting approach. Daniel Austin, CEO and co-founder at ASK Partners, stated that this approach aims to support well-capitalized borrowers in prime locations with potential for asset value increase. He also mentioned a month-on-month rise in house prices, indicating a steady market.
Everyone is waiting in anticipation of what the new government will do to drive construction of new homes and unlock the planning system. The positive summer for the UK housing market, as reported by housing industry experts, has built on recent price rises. As we move towards autumn 2025, the housing market appears to be showing signs of resilience, despite the expected slow growth.
- The slowdown in the UK housing market growth in autumn 2025 might be impacted by personal-finance factors such as uncertainty related to the Autumn Budget and mortgage affordability.
- As a result of falling mortgage rates, the housing market has shown signs of revitalization, but it still displays weakness and subdued buyer demand.
- Despite the slower growth projections, some optimism remains for the housing-market in the long term, with Savills predicting house prices could increase by around 24.5% over the next five years.
