Getting my head around the UK Housing Market 2025

The UK housing market has been on quite the rollercoaster over the past few years, hasn’t it?! After the big shock of the COVID pandemic, and the aftermath and subsequent shift in how we live and work, there has been big changes to the average family lifestyle, and how said families live and work and use their homes. Remote working has become a norm for many, while interest rates have been all over the place, thanks to banks loosening and tightening credit. But with things maybe starting to settle down a bit, it’s time to take a good look at what the future holds for the housing market in 2025. This is something that our family are keeping an eye on in particular, for reasons I will explain further on…

Remote Work and House Size: Time to Upgrade?

We’ve all heard the buzzwords—hybrid working, flexible schedules, work-from-home revolution—but now that it’s been a few years, we’re beginning to see some real changes in the way people are thinking about their homes. If you’ve been working from home, your space is feeling cramped, and you’ve been working from your dining table for the past few years, you might be thinking about the possibility of moving to somewhere bigger. As families grow or work from home becomes a long-term reality, it can feel like serious cabin fever setting in, and families outgrow even the loveliest of smaller homes. So, how do you know if it’s time to upsize?

Before you start browsing properties, it’s worth calculating how much you can afford to borrow and how much of a monthly repayment you can handle. It’s always a good idea to get a rough estimate using an affordability calculator, such as one from MortgageCalculator.uk. This can help give you an idea of whether you can comfortably afford to increase your mortgage, or if it might be better to stick with your current setup.

But what if you love your home, but you just can’t seem to make it work with a growing family and work life the operates from home? That’s where making the most of your current space comes in. You could consider setting up a dedicated home office, maybe from your garden. This is then a separate area where you can focus without distractions, and help to keep your career and your family life running smoothly. Using an online mortgage repayment estimator can give you a better idea of how your finances will change if you decide to free up some cash and release some equity in your home, in order to carry out some home upgrades.

The Market in 2025: Where Are We Heading?

So, what does 2025 have in store for the housing market? Well, if you’ve been watching or reading the news, you know that interest rates are a key factor, and watching these ping up and down over the past couple of years has caused some stress, I’m not going to lie! We’ve been lucky enough to have had a very low interest over the past 5 years on a fixed mortgage, but that will all change later this year – hence the nerves! The Bank of England has been making moves to tighten credit after years of low interest rates during the pandemic, with house prices going up and down in value over the past couple of years. As a result, people are feeling a little more cautious about their mortgage commitments. Fingers crossed though that the market seems to be adjusting and is a little more stable now.

For the rest of this year we can apparently expect some stability, but it’s likely that interest rates will still be on the higher side compared to the lows we’ve enjoyed in the past *sob*. It’s important to consider how these rates will affect your monthly repayments when deciding whether to buy, sell, or refinance. If you’re thinking about refinancing or remortgaging, now’s a great time to start looking into your options. If you’re living in London like myself, the Help to Buy scheme can also help and advise those looking to get on the ladder in such an expensive part of the country.

Refinancing and Remortgaging: What to Keep in Mind

If your current mortgage rate is higher than what’s available on the market, it might be time to consider refinancing or remortgaging later this year. Interest rates have been very up and down, but there are still plenty of options out there that might be more favourable than what you’re paying now. A well-timed remortgage could save you a significant amount on your monthly payments, freeing up money for other things. I’m really hoping that this will be the case for us.

Using tools like a remortgage calculator that I’ve mentioned before can really help you see the potential benefits of switching your mortgage deal. Not only can it show you how your monthly payments might change, but it also provides you with an idea of what your overall loan repayment schedule could look like after a remortgage. 

A Little Preparation Goes a Long Way

For anyone looking to make a move—whether it’s upgrading to a bigger home, refinancing, or even considering an investment property—there are plenty of options to explore. It’s all about doing your homework and planning ahead. If you’re not sure where to start, tools like affordability calculators and remortgage checkers can help guide you through the process.

Whether you’re buying your first home or looking for that perfect family property, the key is to stay updated with market trends and use the right tools to make sure you’re getting the best deal possible. Don’t forget to consider your long-term goals too! After all, buying a home is not just an investment in bricks and mortar—it’s an investment in your financial future.

What’s your take on the housing market in 2025? Are you planning to upgrade, refinance, or just sit tight for now? Let me know in the comments below!

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Becky

Meet the award-nominated UK lifestyle blogger behind Spirited Puddle Jumper – a mum of three living in South East London! Becky shares the real ups and downs of family life, parenting tips, and lifestyle inspiration, proving that being a mum doesn’t mean you stop being fun or having other interests! Follow along for honest insights into UK family life and opinions on a whole range of topics, from travel and food, to beauty reviews, home and DIY, business and health and wellness.