Expert voices and recent data highlight a cooling UK housing market in 2025, with affordability, rising mortgage costs, and limited supply driving stagnation and cautious investment strategies.
The UK housing market in 2025 is facing substantial challenges that have sparked concerns from experts and industry observers alike. Kirstie Allsopp, a well-known TV presenter and property expert, has vocally described the market as “dead,” a statement that, while dramatic, reflects a complex reality beneath the surface of headline figures. Allsopp’s primary concern revolves around the issue of affordability and the sustainability of recent price growth, which she describes as unsustainable for most would-be buyers.
Allsopp’s analysis points to several key pressures undermining the market: stagnant or modest price growth, high borrowing costs due to increased mortgage rates, and a persistent mismatch between supply and demand. She cites data illustrating the steep rise in property prices over the past decades, exemplified by a four-bedroom semi in Yorkshire, which soared from around £124,000 in 2001 to £495,000 in 2025. This growth far outstrips wage increases, exacerbating affordability issues and pricing many potential buyers out of the market. Additionally, the higher cost of finance has put strain on both buyers and landlords, raising the bar for entry and ongoing investment.
Recent surveys and forecasts underpin Allsopp’s warnings. The Royal Institution of Chartered Surveyors (RICS) revealed that February 2025 marked the UK housing market’s weakest month since late 2023, with buyer demand declining and expected to weaken further. Meanwhile, the property website Rightmove indicated that UK asking prices saw their smallest spring increase since 2016, with only a 0.6% rise between April and May 2025, signaling a slowdown after the expiry of favourable tax incentives. Moreover, Rightmove reported an annual decline of 0.1% in average asking prices, affected by a 9% rise in homes for sale in southern England, which translated into longer selling times — a clear sign that markets in traditionally high-demand regions like London and the South East are cooling.
However, not all regions are equally affected. Knight Frank and other industry data suggest more modest house price growth ranging from 1% to 4% in many areas, with regions in the North and Midlands remaining relatively affordable and offering potentially better rental yields. For investors, rental yields remain a critical consideration, with England and Wales averaging 7.4% in early 2025, indicating some opportunity for income-driven investment despite the wider market’s challenges.
Government interventions aim to address the chronic supply shortage that fuels affordability problems but have yet to offer significant relief. Although the UK government recently pledged £2 billion to build up to 18,000 affordable homes in England starting in 2027, the actual impact will not be felt for several years. This highlights the structural nature of the supply-demand imbalance dogging the market, with only modest housing stock increases expected in the near term.
The market’s current state demands recalibrated expectations for buyers and investors. Experts advise focusing on locations with sound fundamentals — strong demand, access to amenities and transport, and stable prices — rather than chasing prestige areas with weak yields or stagnant growth. Those relying on rental income should fully account for all costs, including mortgage interest, maintenance, and taxes, particularly given looming regulatory changes. Stress testing finances against potential further interest rate rises is essential, as is considering alternative property investment routes such as shared ownership or Real Estate Investment Trusts (REITs), which can mitigate direct exposure to market volatility.
The property sector is also suffering from wider economic and political uncertainty. Jasmine Birtles, CEO of MoneyMagpie.com, attributes the “dead” conditions in parts of the market to government tax policies that deter high-net-worth buyers and property developers. Measures such as potential annual taxes on properties over £500,000 and buy-to-let National Insurance fees are reportedly causing pullbacks from traditionally active market participants, particularly in higher-value segments. Birtles predicts the market may remain sluggish for a couple of years unless there is a significant policy shift.
In summary, while the UK housing market in 2025 is far from the buoyant, high-growth environment of previous decades, describing it as “dead” must be nuanced. The market is under undeniable strain from affordability pressures, high borrowing costs, and supply shortages, leading to stagnation or mild declines in some areas. Nevertheless, pockets of opportunity remain for informed and cautious investors and homebuyers, particularly outside the overheated South East. Success in today’s market requires careful research, financial prudence, and a long-term view, acknowledging that the days of easy, rapid capital appreciation have likely passed for now.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent data and analyses, with the earliest known publication date of similar content being 6 days ago. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The narrative is based on a press release, which typically warrants a high freshness score. However, the presence of recycled content and the reliance on a press release suggest a need for further scrutiny. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The presence of recycled content and the reliance on a press release suggest a need for further scrutiny. ([moneyweek.com](https://moneyweek.com/investments/house-prices/labours-failure-on-house-building-is-turning-into-a-national-emergency?utm_source=openai))
Quotes check
Score:
7
Notes:
The direct quotes from Kirstie Allsopp and Jasmine Birtles appear to be original, with no identical matches found in earlier material. However, variations in wording and the absence of online matches raise questions about the exclusivity and authenticity of the quotes. The lack of online matches for the quotes suggests they may be original or exclusive content, but this also raises questions about their authenticity. ([moneymagpie.com](https://www.moneymagpie.com/manage-your-money/uk-housing-market-dead-kirstie-allsopps-warning-examined-is-it-really-that-bad?utm_source=openai))
Source reliability
Score:
6
Notes:
The narrative originates from MoneyMagpie.com, a single-outlet platform with limited verifiability. The reliance on a press release and the lack of corroboration from other reputable sources raise concerns about the reliability of the information presented. The presence of recycled content and the reliance on a press release suggest a need for further scrutiny. ([moneyweek.com](https://moneyweek.com/investments/house-prices/labours-failure-on-house-building-is-turning-into-a-national-emergency?utm_source=openai))
Plausability check
Score:
7
Notes:
The claims about the UK housing market’s challenges align with recent data, such as the RICS survey indicating the weakest month since late 2023. However, the narrative lacks supporting detail from other reputable outlets, and the tone is unusually dramatic, which may indicate potential disinformation. The lack of supporting detail from other reputable outlets and the dramatic tone raise questions about the credibility of the information presented. ([reuters.com](https://www.reuters.com/world/uk/uk-housing-market-has-weakest-month-since-late-2023-rics-survey-shows-2025-03-13/?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent data and analyses, but the reliance on a press release, the presence of recycled content, and the lack of corroboration from other reputable sources raise significant concerns about its credibility. The dramatic tone and potential disinformation further undermine the trustworthiness of the information presented. Given these factors, the overall assessment is a ‘FAIL’ with medium confidence.
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