What Will Happen to the UK Housing Market in 2025?

The UK housing market has been a hot topic of discussion over the past few years, and 2025 is shaping up to be no different. With fluctuating interest rates, evolving government policies, and changing buyer preferences, understanding the trends that may unfold is essential for homeowners, buyers, and investors alike. At Match Estates, we’re keeping a close eye on the market, especially in the southeast of England, with a particular focus on Folkestone, Kent. Here’s what we anticipate for the year ahead.

The National Picture: A Slowdown or Stabilisation?

The broader UK housing market has experienced significant turbulence in recent years, driven by factors such as the pandemic, Brexit, and a cost-of-living crisis. As we step into 2025, we expect the market to show signs of stabilisation, though not without its challenges.

Interest Rates and Affordability

With inflationary pressures easing slightly, the Bank of England may hold interest rates steady in 2025, providing much-needed clarity for buyers. However, affordability will remain a critical concern, especially for first-time buyers. We anticipate modest house price growth of around 1-3% nationally, marking a departure from the dramatic peaks and troughs of recent years.

Government Policies

Policies aimed at supporting the housing market, such as First Homes schemes and Help to Buy alternatives, will continue to shape demand. Additionally, measures to boost energy efficiency in rental homes could play a role, particularly for older properties that may require upgrades to meet new standards.

Folkestone, Kent: A Rising Star in the Southeast

Folkestone, Kent, has been quietly transforming over the past decade, and 2025 looks set to continue this upward trajectory. As a coastal town with excellent transport links to London and Europe, Folkestone has become a popular choice for those seeking an affordable yet vibrant lifestyle.

Rising Demand

Folkestone’s appeal lies in its unique combination of affordability and culture. With average house prices still significantly lower than in London and nearby towns like Canterbury, buyers are increasingly looking to Folkestone as a place to settle. Match Estates anticipates a 4-5% increase in property prices in the town, outpacing the national average.

Regeneration Projects

The ongoing regeneration of Folkestone’s harbour area, combined with investments in local infrastructure and amenities, continues to attract interest. The town’s Creative Quarter, home to a thriving arts and culture scene, has positioned Folkestone as a hotspot for professionals and families alike. These developments are likely to drive further growth in demand for both residential and investment properties.

Commuter Appeal

Thanks to the High-Speed 1 (HS1) rail service, Folkestone is just 55 minutes from London St Pancras, making it a prime location for commuters seeking value for money. In 2025, we expect this commuter appeal to remain strong, further boosting the town’s housing market.

What Does This Mean for Buyers, Sellers, and Investors?

For Buyers: If you’re considering buying a property in Folkestone, acting sooner rather than later could be a smart move. With demand rising and prices projected to increase, securing a property in 2025 might save you money in the long run.

For Sellers: Sellers in Folkestone can look forward to a robust market, with plenty of interest from buyers both locally and further afield. Pricing your property competitively and highlighting its unique features will be key to attracting offers.

For Investors: Folkestone’s regeneration, strong rental demand, and potential for capital growth make it an attractive option for property investors. Whether you’re looking at buy-to-let opportunities or long-term investments, the town’s prospects are bright.

Match Estates: Your Trusted Partner in Folkestone

At Match Estates, we’re passionate about helping our clients navigate the dynamic housing market. Whether you’re buying, selling, or investing, our local expertise and personalized service ensure you’ll make the most of the opportunities in Folkestone and beyond.

As 2025 unfolds, the UK housing market will continue to evolve, and Folkestone is poised to remain one of the standout areas in the southeast. Get in touch with Match Estates today to explore how we can help you achieve your property goals in this exciting year ahead.