The UK property market has been on quite a roller coaster over the past few years: pandemic boom, rising interest rates, falling buyer demand, high rents and now things are changing again. If you're thinking, " what's actually going on right now?" Let’s see:
1. House Prices Are Slowing Not Crashing
After several years of wild price growth, the market has finally cooled.
Prices are not necessarily falling everywhere, but the pace has definitely became neutral.
Because:
- Higher mortgage rates mean fewer people can afford to buy.
- Sellers are having to be more realistic.
2. Mortgage Rates Are Still High but Slowly Improving
This has been the biggest stress for buyers.
But the good news is:
The rates aren't shooting up anymore but are gradually coming down
Effect:
- First-time buyers are finding it tough to enter the market.
- Many buyers are waiting for better rates.
3. Rents Are at a Record High Everywhere, Not Just in London
If you're renting. you already know this.
Demand is huge, supply is low, and rents have reached the highest level ever in many areas of the UK.
Why renting is so expensive right now:
- Many would-be buyers are staying in the rental market.
- Selling up by landlords has reduced supply.
4. Landlords Are Leaving the Market
This is a major trend.
Lots of landlords, especially small, private ones, are selling their properties because:
- Higher taxes
- Expensive mortgages
- New regulations
5. First Time Buyers Are Getting Creative
More buyers are:
- Going for smaller homes
- Moving further from cities
- Taking longer mortgage terms
- Considering shared flats
Affordability is tight, so people are adjusting.
Final Thoughts
The UK property market isn't as wild today as it was, but it is still very tough on renters, challenging to first-time buyers, and uncertain for landlords-a complex mix of high costs, cautious buyers, and strong rental demand. But compared with the last few years, we're finally beginning to see signs of stability.
