Huddersfield town centre + 2 miles.
This subtle increase in the supply of Huddersfield homes on
the market offers Huddersfield buyers more choice and has helped prevent
bidding wars that inflate prices. Yet demand remains strong, supported by
population growth, longer life expectancy, lifestyle changes, and the ongoing
desire for homeownership. This equilibrium of supply and demand is stabilising
prices, not sending them into freefall. You see, one of the main reasons UK
house prices dropped in late 2007 was the high level of homes on the market. In
July 2007, there were 1,022 homes for sale in Huddersfield!
Meanwhile, the rental market is adding another layer of
support. High rents have prompted many tenants to consider buying as a more
cost-effective long-term option. This has boosted first-time buyer numbers,
especially in areas where house prices remain relatively affordable, like
Huddersfield. Some Huddersfield landlords are also exiting the market, which
reduces rental stock, drives up rents further, and makes buying more appealing.
Of course, there are variations across the UK. Some parts of
London and the South have seen a softening in house prices over the last few
years, as affordability pressures and changes to stamp duty and landlord
taxation have taken a greater toll. However, many regions, particularly those
in the North of England, Northern Ireland, and parts of Scotland, continue to
experience modest house price growth. Regional disparities will always exist,
but they don't change the national picture, which is one of moderation, not
meltdown.
Could a house price crash still occur?
It's not impossible, but the necessary conditions are not
present. To see a genuine crash, we would need a perfect storm: a sharp rise in
unemployment, a sudden spike in interest rates, a collapse in mortgage
availability, and a wave of forced sales. None of those elements are currently
on the horizon.
Even the risks that do exist, i.e. slower-than-expected rate
cuts, changes to government housing policy, or economic shocks from abroad,
would likely lead to stagnation or small dips, rather than a crash. The
foundation of the UK housing market is far stronger than it was in 2008 or the
late 1980’s. There is no subprime mortgage crisis, no rampant overborrowing,
and no glut of unsold new builds.
In conclusion, although the UK housing market in 2025 is not
without its challenges, the data and trends indicate a firm direction towards
stability. A crash remains highly unlikely. Most regions are expected to
experience slow but steady growth. Some pricier areas may dip slightly. But
overall, the narrative for 2025 is one of cautious optimism. Buyers and sellers
alike would do well to tune out the crash headlines and focus on what the
numbers are saying.
If you're planning to move, buy, or invest this year,
opportunities abound, especially if you understand your local market and take a
long-term perspective. This is a normalising market, not a collapsing one.