Is now a good time to buy a house?

Interest rates have fallen and mortgages are becoming more affordable. So is now a good time to buy a house – or should you hold off?

Buying a house or flat is a long, stressful and expensive process. It’s the biggest purchase that most people ever make – and once you’ve bought a property, it’s a decision that you’ll have to live with.

Exactly when is the right time to buy a house depends on your individual situation. But if you have some flexibility, here’s how to decide whether now is a good time to buy.

This article covers:

What is happening to house prices?

The average property price rose 4.6% over the year to December 2024, according to the latest data from the Office for National Statistics (ONS). It’s a promising sign for the year ahead, at least if you’re a home owner already or looking to sell.

This puts the average UK house price at £268,000 in February 2025 but, of course, that figure masks a wide variation in prices in towns and cities across the UK. 

• In England, the average house price was £291,000 – up 4.3% from a year previously.
• In Wales, the average house price was £208,000 – up 3% from a year previously.
• In Scotland, the average house price was £189,000 – up 6.9% from a year previously.

To see average prices in your area, look at one of the leading property price data hubs from Nationwide or Halifax.

House prices are still rising, but some factors are keeping a lid on prices for now. They include:

Affordability is stretched 

Most mortgages allow people to borrow four to five times their earnings. Property prices are already so high that affordability is stretched in parts of the country.

“People who are priced out of buying face sky high rents for life, while those who stretch themselves to get on to the property ladder can end up having to put other financial goals on hold, to focus on covering the cost of owning a home,” says Sarah Coles, head of personal finance at Hargreaves Lansdown, the investing platform.

Interest rates are higher

The Bank of England’s base rate is at 4.5% at the time of writing – and although this is down from the 15-year high of 5.25% in August 2024, it’s not far off. 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 – especially urban hotspots with plenty of jobs, and towns in commuting distance of bigger cities – there are more buyers than there are suitable homes.

People can still afford to buy homes

Low levels of unemployment and recent growth in wages is supporting property prices, as people are still able to borrow, according to Robert Gardner, chief economist at Nationwide.

Inherited wealth is also propping up house prices, as gifts and loans from parents and grandparents bridge the gap between what people can borrow and what they need to buy.

Older 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 next five years.

Experts believe that property prices will be supported and rise gradually – although 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?

Editor’s choice: Best savings accounts in February

Whatever your plan for the cash, it makes sense to ensure your savings are earning the best rate they can. We name the top-paying easy access, fixed, and notice rates on the market. 

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. 

In December 2024 the average rent was 9% higher than the year before, according to the Office for National Statistics (ONS). Ongoing increases in rental costs all over the country has been a driving factor for people wanting to buy homes, as monthly mortgage repayments often work out less than rent.

• 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 might still be able to negotiate on price for the property you want. Estate agents try to give the impression of high demand, but a property’s selling price 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

Times Money Mentor can help you choose a mortgage with this free comparison tool:

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 tends 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