The UK housing market in 2025 is showing clear signs of a transition. Following a turbulent period of rising interest rates and economic uncertainty, property activity is beginning to stabilise—but with new patterns that first-time buyers and landlords must understand to make informed decisions.

A Market in Recovery, But Not Uniformly

Recent data from Zoopla reveals that while overall sales volumes have improved across England and Wales, the market’s recovery is uneven. Cities in the North and Midlands are seeing faster movement and higher buyer activity, whereas London and the South East continue to face affordability barriers and sluggish sales.

This shift means opportunity for those who know where to look. In places like Manchester, Leeds, and Newcastle, homes are going under offer in under 30 days, compared to up to 50 days in some southern regions. More properties are being discounted from their original asking prices—around 40% of listings in some parts—offering better value for first-time buyers and landlords alike.

First-Time Buyers: The Window Is Opening

Despite the rise in property prices, the softening of mortgage rates is creating breathing space for new buyers. Lenders are becoming more competitive again, with some rates dipping below 4%, making monthly repayments more manageable. Buyers now have more bargaining power, as many sellers are open to negotiation and quick completions.

This is a vital moment for those trying to get on the ladder. With less competition from buy-to-let investors in certain areas and more flexible borrowing products entering the market—including 5% deposit mortgages and first-time buyer-focused schemes—2025 is emerging as a year of opportunity.

Landlords: Regional Hotspots and Changing Strategies

For landlords, the game has changed. Increased taxes and tighter regulations have caused many in London and the South East to scale back. But in cities across the North and Midlands, rental demand remains strong while entry prices are significantly lower. According to recent figures, yields in these areas are holding up well, especially for HMOs (Houses in Multiple Occupation) and short-term lets.

Successful landlords are pivoting towards regions with strong local economies, university populations, or transport investment. They’re also increasingly seeking mortgages through specialist brokers who can navigate complex lending scenarios, particularly for portfolio landlords or those buying through limited companies.

The Role of Lending in Today’s Market

Whether you’re buying your first home or your fifth property, the importance of the right mortgage cannot be overstated. In today’s fragmented lending landscape, access to over 200 mortgage products is no longer enough—it’s about knowing which lender is the right fit for you.

Credit history, income type (especially for self-employed), property condition, and even postcode can all affect the likelihood of approval. That’s why having a broker who has direct conversations with lending decision-makers—who knows how to present your case—is becoming the difference between “declined” and “approved.”

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Let’s Make It Happen

Whether you’re taking your first step on the property ladder or expanding your portfolio, Approvable is here to help you secure a mortgage that fits. Speak to us today to explore your options—personalised, understandable, and approvable.