When thinking about your future property plans it's important to take your time and do plenty of research to ensure you're making an informed decision.
Here, we explain the pros and cons of making the move in 2025, from stamp duty changes to stubbornly high mortgage rates.
First-time buyers: should you buy a home in 2025?
House prices
House prices increased by around 3% in 2024, according to data from the Land Registry.
Experts have forecast similar rises this year, including Rightmove (rise of 4%), Nationwide (2-4%) and Zoopla (2.5%).
Higher house prices aren't good news for cash-strapped first-time buyers who are already battling against high mortgage rates.
This table shows the impact that small price rises could have on average first-time buyer prices across the UK.
Find out more:The property market
The property market was relatively slow in 2024, though slightly lower mortgage rates drove an uptick in purchases in the second half of the year.
It's likely that we'll see a spike in sales this spring, as buyers look to move before changes to stamp duty come into force on 1 April.
Overall, Rightmove says houses currently take an average of 65 days to find a buyer.
It's likely that the market will continue to be price-sensitive in 2025, so if you are buying, there should be some room to haggle on price.
When searching for properties on portals or estate agent websites, keep an eye on how long they've been on the market and whether they've already been reduced.
Mortgage rates
Mortgage rates didn't fall as far as many people hoped in 2024, but the outlook is somewhat better for this year.
It's likely that we'll see two or three cuts in the base rate by the end of 2025, which should push the cost of borrowing down.
Unfortunately, first-time buyers with small deposits are often last to see the benefit of rate cuts.
If you are able to save a 10% deposit (rather than 5%) this can make a big difference in your mortgage options and the rate you'll be able to get.
Find out more:Borrowing for longer
With mortgage rates remaining high, many first-time buyers have been forced to take out longer mortgages.
Terms of 30-35 years have become much more commonplace in the last few years, but these shouldn't necessarily be feared.
A longer mortgage means lower monthly repayments in the short term, but more money paid on interest in the long term.
If you're in this boat, it's important to remember that over the years you'll build equity in your property, it may rise in value, and mortgage rates will fluctuate.
This means that in the longer term, you may be able to shave some years off your loan.
Stamp duty changes
In April, stamp duty thresholds will change in England and Northern Ireland. Currently, first-time buyers purchasing a property priced up to £625,000 only pay stamp duty on the amount over £425,000.
From 1 April, the £625,000 limit will return to £500,000, and the stamp duty threshold will drop from £425,000 to £300,000.
The change won't impact the average first-time buyer (purchasing a property for less than £300,000), but it will add thousands to costs in more expensive areas.
For example, in Cambridge, where the average first-time buyer price is £417,000, stamp duty bills will rise from zero to £5,850.
Homeowners: should you sell in 2025?
As mentioned earlier, the property market in 2025 is likely to be price-sensitive, so it's important to be realistic about how much your home is worth.
Take your time and do your research before making a final decision on selling, factoring in the likely costs, logistics and short and long-term benefits.
Finding the right estate agent
Choosing the right estate agent to sell your home can be challenging.
It’s important to select an agent with experience in selling properties similar to yours, as they will have a strong pool of potential buyers and know what people are looking for in a property.
Consider speaking to friends, family or neighbours for recommendations and having a walk around your area to find which agents are marketing properties near you.
It's a good idea to invite three potential estate agents to each give you a property valuation before choosing one to sell your home.
Find out more:Factor in the cost of moving
Moving home isn't just about house prices and mortgage rates. You'll also need to factor in a series of additional costs.
Annual data from the price comparison site Reallymoving shows the average cost of moving is just below £14,000.
Stamp duty (£6,250), estate agent fees (£4,544) and conveyancing (£2,002) were the main costs.
The cost of stamp duty for home movers will rise from April, when the thresholds return to previous levels. As a result, the average home mover will pay an additional £2,500 in stamp duty.
Stamp duty bills are unavoidable, but when looking for an estate agent, conveyancer, surveyor or removals company, make sure you compare costs from different providers. Shopping around could significantly cut your bills.
Find out more:
Homeowners: should you stay put in 2025?
There are several factors that might convince you to put off a move for a year or two.
As we've already mentioned, stamp duty increases and high mortgage rates aren't particularly enticing for homebuyers, and the cost of living crisis hasn't gone away.
Remortgaging could impact your payments
The turbulent mortgage market of recent years means homeowners will have very different experiences when they next come to remortgage.
Analysis by the Bank of England shows that four million homeowners will remortgage to a more expensive deal within the next three years. Those most affected will be mortgage holders coming off long-term fixed-rate deals.
In contrast, someone who fixed for two years in December 2022, when the average rate was 6.01%, will now be due to remortgage and might be able to secure a cheaper deal. The Bank forecasts that over a quarter of mortgage holders will see their monthly payments fall over the next three years.
The bottom line is that when your mortgage was last renewed will play a significant role in shaping your financial situation.
If you’re due to remortgage, carefully consider how long to fix your rate for. If you’re planning to move in the near future, opting for a two-year fix will give you more flexibility and help you avoid early repayment charges.
Find out more:Should you renovate rather than move?
If you do decide to stay put, you might consider renovating your home in 2025.
This could involve building an extension, adding a conservatory, or converting your loft. Alternatively, you might focus on updating existing spaces, such as your kitchen or bathroom.
Whatever project you choose, it’s important to understand how different design and material choices will impact the cost, negotiate to get the best price and find the right professionals for the job.
We have a range of guides covering the various home improvements you might consider, helping you plan and make informed decisions about your renovation projects.
If you’re a Which? member, you can also use our guides to better understand the costs of various home renovations.
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