The UK’s second-hand housing market has demonstrated remarkable resilience over the past year, bouncing back from a period of stagnation with renewed vigor.

Falling mortgage rates, increased buyer demand, and a surge in listings have revitalized activity, creating opportunities for both sellers and buyers. Here’s a snapshot of the trends shaping the market so far this year…

A Market Rebound Fueled by Affordability

After two years of subdued activity, the market rebounded in late 2024 as mortgage rates hit 15-month lows. Buyer demand surged by 25% year-on-year, with sales agreed rising by a similar margin. 

Regions like the East Midlands and North-East led the charge, seeing sales jump by up to 30%. This resurgence reflects pent-up demand from households delaying moves during higher-rate periods, combined with improved affordability as incomes rose and borrowing costs eased. Supply is also growing, driven by sellers—including investors and second homeowners—responding to tax changes. Notably, 32% of listings are now chain-free, particularly two-bedroom homes (41%), offering buyers faster transactions. Coastal and rural areas like Truro and Bournemouth saw listings spike by 40%+ due to incoming council tax hikes on second homes.

Regional Divergence: North-South Dynamics

House price growth remains uneven. Northern Ireland (+5.5%) and the North West (+3.1%) outperformed, while southern England lagged due to affordability pressures34. 

London, however, transitioned from a -1.7% decline to a modest +0.5% gain, signalling a gradual recovery. Markets like Wigan (+5%) and Carlisle (+2.4%) are thriving, supported by job growth and lower prices. In contrast, prime London areas face longer sales times and price adjustments.

2025 Outlook: Modest Growth, Buyer Opportunities

Experts forecast a 2.5%–4% rise in average UK prices in 2025, driven by stable mortgage rates (~4.25%) and a robust sales pipeline. The north-south divide will persist, with Scotland, the North West, and Yorkshire tipped for above-average growth. Buyers remain cautious, with 37% of sales agreed at >5% below asking price, emphasising the importance of realistic pricing.

First-time buyers are seizing opportunities, accounting for 49% of purchases nationally—and up to 75% in cities like Manchester. Investors exiting the market (13% of listings are ex-rentals) are freeing up entry-level stock, while the “Bank of Mum and Dad” injected £9.3 billion in 2024 to support deposits.

A Buyer’s Market with Room to Negotiate

With 10% more listings than 2023, buyers enjoy greater choice and negotiating power. However, competition remains fierce for well-priced homes, particularly in affordable regions.

Sellers must balance optimism with pragmatism: 20% of homes have reduced prices by up to 5%, and days-on-market averages 72.

Final Thoughts

The second-hand market’s rebound underscores its adaptability. While challenges like affordability and tax changes persist, the overall outlook is upbeat.

For buyers, 2025 offers a rare mix of choice and value—especially in high-growth regions. For sellers, strategic pricing and responsiveness to local trends will be key.