Market Comment (May 2025) - Giving You Confidence In Complex Times
As we move through 2025, the UK property landscape is shifting under the weight of changing buyer behaviour, economic pressures, and long-term policy challenges. Here’s a clear, down-to-earth view of what’s happening, how it may affect you, and what it might mean for the market ahead.
First-Time Buyers Driving Market Confidence
Despite the ups and downs of recent years, industry sentiment is showing signs of recovery—largely thanks to renewed confidence in first-time buyers. In a recent survey by Countrywide Surveying Services, 50% of property professionals pinpointed first-time buyers as the most promising sector for the rest of 2025. This is ahead of new builds, later-life lending, and even the buy-to-let sector.
While this optimism is encouraging, it sits alongside persistent concerns. Affordability, access to finance, and interest rate fluctuations remain the biggest barriers. For those aiming to buy their first home, staying financially prepared and being ready to act when the right opportunity comes up will be key.
Sellers, on the other hand, should keep in mind that demand may still hinge on price sensitivity and mortgage affordability.
The Long Road to Homeownership
Yet for many renters, that first step onto the property ladder still feels out of reach. New research from SpareRoom shows that 44% of UK renters doubt they’ll ever own a home, with younger renters hit hardest. The reasons are familiar: deposits are too large, incomes too stretched, and rents continue to rise. In fact, average UK room rents have jumped by 29% since 2021, making it even harder to save.
This situation means we may see more renters delaying homeownership, downsizing their expectations, or seeking support from shared ownership schemes or government initiatives. While some younger renters remain hopeful, the timeline to buy is clearly getting longer. Sellers should take note—today’s buyer pool is thinner and more cautious.
First-Time Renters Underprepared for the Move
Even among those still renting, the process of moving brings its own challenges. A survey by Tempcover found that nearly half of first-time renters underestimated how many trips their move would take, with 83% needing more than a day to complete it. Packing, decluttering, and the emotional stress of settling in all added to the strain.
This is more than just a logistical footnote. It reflects how important preparation is—whether you're renting, buying, or selling. Knowing the true effort and cost of moving home can help reduce last-minute panic and financial surprises.
Ten Years On: The Housing Crisis Deepens
Looking back over the past decade, the picture isn’t a rosy one. According to the HomeOwners Alliance, concerns around affordability, the leasehold system, and the homebuying process have all worsened. In 2015, 42% of people were worried about leasehold issues—today, that number is 64%. Stamp duty and the process of buying and selling a home have become greater headaches too.
Worryingly, fewer non-homeowners now aspire to own at all, with the percentage hitting a 10-year low. It’s a stark reminder that while we may see short-term gains in market activity, long-term structural issues still cloud the outlook. Those looking to buy or sell should approach the process with awareness of the broader landscape and a readiness to adapt.
A Mixed Bag of Optimism and Obstacles
Despite all these pressures, a recent industry survey taken ahead of UKREiiF 2025 shows an uptick in optimism across the property and infrastructure sectors. Around 70% of professionals have a positive outlook—an 18-point increase from last year. London saw some of the biggest sentiment improvements, reflecting renewed confidence in the capital’s resilience.
Still, optimism comes with caveats. Planning delays, inflation, political uncertainty, and access to finance remain top concerns. While things may be looking up for developers and investors, homeowners and buyers will still face delays and rising costs in many areas. Staying informed and pragmatic will help you make smart decisions as the year unfolds.
The market in 2025 is complex. There’s more positivity than in recent years, but also more pressure—particularly for first-time buyers.
At Trading Places, we understand there are many factors to consider when making a move (or not) in the housing market. Many of these decisions relate to family and emotional factors, as opposed to the standard job and financial factors cited regularly.
Whatever reasons you are considering when deliberating over a move, we are patient and professional estate agents. We’ve helped many families move home during challenging times, and whatever you require, we will be here to assist you.
We make sure you make an informed move
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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