UK asking price record broken: Is this a good time to buy UK property?

May 28, 2025

New seller asking prices rose in the UK by 0.6% this month, according to Rightmove. That takes the average asking price to a record £379,517 at the start of the traditional Spring busy period – but what does that mean for investors?

High prices are normally seen as a good thing. However, a deeper look at the data shows there is more nuance than that. We can also see where the real opportunities are in the long term.

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Demand maintained following the stamp duty deadline

The Stamp Duty deadline has passed, but the demand is still there in the market for properties despite some concern that it would disappear once April arrived.

However, even though demand has reduced slightly, Rightmove reports that overall it is still 5% higher than at the same time in 2024. That fact supports the argument that the market is in a much healthier position than it was 12 months ago, thanks to a combination of falling mortgage rates and rising wages.

So, while there are fewer buyers and 14% more properties available, the proportions are still right to support the forecast house price growth over the rest of 2025 and into 2026. That means investors can buy now with confidence – but what about in the future?

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How will falling interest rates affect asking prices and buyer numbers?

Mortgage rates are predicted to keep falling as the Bank of England cuts the base rate of interest. Another 0.5% of cuts is expected this year, and some analysts are convinced that we will see a total reduction of 0.75% - 1% by this time next year.

As the base rate comes down, so will mortgage rates. We have already seen all the major lenders offering mortgage products with interest rates below 4% again for the first time in two years. If and when the base rate falls further, we can expect mortgage products to keep getting cheaper.

Read our latest blog for a wider view of how investors are benefiting from the latest interest rate cut.

Cheaper mortgages will mean more buyers entering the market and more competition for homes. Even with the 14% increase in available properties reported by Rightmove, there are still not enough homes to go around. When buyer numbers go up over the rest of 2025, the available stock will be even less satisfactory, and prices will go up further.

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When is the best time to buy UK buy-to-let property?

The best time to buy UK buy-to-let property for sale is always as soon as possible. The challenging market conditions of the past two years are firmly in the past, and asking prices are still going up even in a so-called “buyer’s market”.

When conditions improve further and competition for homes grows, that means property asking prices and values will go up even further. Buying now means locking in today’s price before those rises happen. You will also start earning capital appreciation immediately on your UK buy-to-let property.

This is a particularly important point for investors looking at UK off-plan buy-to-let property, or who are considering a leverage strategy to secure the highest return on investment possible over the long term.

The other aspect to consider is the safety of bricks and mortar when compared to other types of investment. At a time of global economic uncertainty, a tangible asset becomes even more valuable.

Even if the market has small ups and downs, the overall pattern for property is growth. For example, the average property value in Manchester has increased by 481% since the year 2000, according to the Manchester Evening News – despite major world economic shifts in that time. Not many other types of investment can claim results like that.

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Where should I invest to make the most of the 2025 housing market?

When deciding which cities to invest in this year, the best locations are those where demand is always high and property prices are rising faster than average. The overall UK picture is good right now, but it’s even better in the Northern regions, where house prices are going up even faster than the national average.

That is due to overwhelming demand in places like Manchester and Liverpool, combined with a lack of supply. Both locations also offer investment opportunities close to the waterfront and next to regeneration masterplan areas – both of which have been proven to offer enhanced returns even in these booming markets.

You could even branch out into areas which offer similar advantages, like proximity to the coast. For example, Eastbourne is a stunning seaside town with a lack of quality housing. It also has multiple potential rental audiences thanks to its status as a popular seaside resort, making it a diverse investment opportunity.

If you want to learn more about the UK’s best property investment locations in 2025, read our market insights and get in touch with our expert team today for more information.