The housing market changes each month, so it’s near impossible to state when the best time to buy is. However, there are factors that you should consider which could help your decision, so we’ll go through them here.
Before buying a home, you need to think about several key things:
💡 Tip: Talk to a mortgage adviser before making decisions. They can help you understand what's best for your specific situation.
Mortgage interest rates tell you how much extra money you pay when you borrow using a mortgage. Think of this rate as a fee the bank charges you for letting you use their money.
They are expressed in percentage form, so as an example, 4.2%. This means that you would pay an extra 4.2% each year on top of the money you borrowed.
Lower mortgage interest rates mean you pay less money to borrow. Rates can be either fixed (the cost to borrow is fixed for a specific timeframe) or variable (the cost to borrow can go up or down during the course of the loan).
Your credit score, deposit size and the economy, are a few things which can affect what mortgage rate you can get.
Mortgage rates have risen since the record lows of 2021.
The Bank of England's base rate has dropped slightly in recent months and now stands at 4.5%, but it's still significantly higher than it was in 2021.This has pushed up mortgage interest rates considerably.
Over the last few months, mortgage rates have begun to fall, but no one knows how long this will last, and when they will begin to go up again.
As well as mortgage rates, you need to consider additional fees like booking and arrangement fees. Include these in your calculations to understand the true cost of your mortgage deal.
💡 Tip: If you add the cost of fees to your mortgage loan, you'll pay interest on them for years. It's often cheaper to pay fees upfront if you can.
Nobody knows if and when house prices will drop. According to the latest figures, the average UK house price as of February 2025 was around £268,300. This represents a fall in house price inflation (the rate at which prices rise) of 1.8%.
Essentially, it tells us that despite property value going up, the speed at which it goes up has slowed down in recent months.
Spring remains the busiest home-moving season when most buyers and sellers enter the market.
Many property experts predict that house price growth will continue to slow slightly throughout 2025.
Use the UK House Price Index to understand how property prices have changed over the past 12 months. You can look at different property types and areas to spot trends.
Keep checking property websites like Rightmove and Zoopla for recently sold prices in your target area to track market changes.
Stamp Duty Land Tax (SDLT) is a tax you pay when buying property or land over a certain price in England and Northern Ireland (the rules differ in Scotland).
The amount of stamp duty you pay depends on the purchase price of your property and whether you're a first-time buyer, home mover, or purchasing an additional property. It works as a tiered system where different tax rates apply to different portions of the property price.
As of April 2025, changes to Stamp Duty Land Tax (SDLT) has meant many buyers will now be either paying, or paying more, tax when they purchase a property.
The new rates are as follows:
|
Purchase price |
SDLT rate |
|
Up to £125,000 |
0% |
|
The next £125,000 (the portion from £125,001 to £250,000) |
2% |
|
The next £675,000 (the portion from £250,001 to £925,000) |
5% |
|
The next £575,000 (the portion from £925,001 to £1.5 million) |
10% |
|
The remaining amount (the portion above £1.5 million) |
12% |
You pay no stamp duty on homes worth £125,000 or less. You only pay tax on the amount above this figure.
Example: If you buy a £300,000 house:
You can use an online stamp duty calculator to work out your exact payment.
If you're buying your first home in England, Wales, or Northern Ireland, you get special treatment! You pay no stamp duty on the initial £300,000 of your home providing the property’s value is less than £500,000 and it’s your main home. For more information on SDLT exemptions, you can visit the government’s website.
Note: You must pay your stamp duty within 14 days after completing your house purchase. Your solicitor will help you with this.
The UK government offers several helpful schemes to make buying a home easier for you. These government mortgage schemes give first-time buyers and families a boost onto the property ladder. Some of these include:
These government housing schemes create pathways to homeownership that might otherwise feel impossible. If you dream of owning your own home, exploring these UK government mortgage programs could turn that dream into reality much sooner than you think!
As always, the right time will be dependent on you and your circumstances. If you do plan to buy, some final points to think about:
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Zubin is a personal finance writer with an extensive background in the finance sector, working across management and operational roles. He applies his experience in customer communication to his writing, with the aim of simplifying content to help people better understand their finances.
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