The Bank of England has opted to reduce the base interest rate to 4.25%, marking the fourth consecutive time that rates have been lowered. As inflation shows signs of retreat and economic pressures begin to ease, many are wondering how this decision will shape the UK housing market over the coming summer months.
At Survey Hut, we keep a close eye on these developments, not just because they affect the wider market, but because they directly influence the urgency and nature of home surveys, buyer timelines, and seller confidence.
UK House Prices Are Holding Steady (For Now)
Despite warnings from some economists of a major downturn, house prices across the UK have shown remarkable resilience throughout early 2025. According to recent reports from Zoopla and Rightmove, asking prices have actually edged upwards in certain regions, with many sellers taking advantage of the relative market calm to list their properties ahead of summer.
This price stability can largely be attributed to the Bank of England’s decision to continue lowering interest rates. With no sudden shocks to the system, both buyers and sellers have regained a sense of clarity and control. The result? A steadier property market that’s allowing transactions to progress without the panic or uncertainty that characterised the previous 18 to 24 months.
Mortgage Rates Remain Elevated
While the Bank of England’s rate has steadied, mortgage products on the market remain relatively expensive compared to historical norms. Average two-year fixed rates are hovering around the 4.6% mark, while average five-year fixes are slightly below two-year at 4.5%. Although not cheap, these rates are a welcome sign for borrowers who feared the worst in 2023 and early 2024 when rates exceeded 6% in many instances.
Importantly, lender competition is beginning to return. With swap rates (the market’s forecast of future interest rates) settling, lenders are launching more aggressive deals to capture market share. As a result, we’re seeing a broader variety of products, including those targeted at first-time buyers and buyers with smaller deposits.
From a surveyor’s perspective, this market context reinforces the importance of due diligence. Buyers may have more mortgage options, but they’re still facing tight budgets. A detailed home survey can highlight issues that could cost thousands to repair, critical information for anyone stretching their finances to afford today’s housing prices.
Is Summer 2025 A Window of Opportunity for Buyers?
With inflation relatively low compared to recent highs, interest rates steady, and the prospect of further rate cuts later in the year, summer 2025 could present a favourable window for many buyers to act. Families looking to move before the school year begins, as well as first-time buyers hoping to lock in rates before any further market shifts, may find that the coming months offer a balance between affordability and availability.
For sellers, the relative market calm is providing a stable platform to list properties without panic-pricing or lengthy periods on the market. This is contributing to a more predictable transaction process, something we’ve seen reflected in the number of survey bookings rising steadily since the start of April.
However, buyers should still proceed with caution. Even in a stable market, properties can conceal costly issues, from roof repairs and damp, to structural concerns and poor insulation. Booking a survey before you commit to a purchase is the best way to ensure your investment is sound and your finances are protected.
What If Interest Rates Continue to Fall Later in the Year?
Looking ahead, market speculation is mounting around the possibility of the Bank of England further cutting interest rates later in 2025. Analysts believe this could happen as early as June or July, depending on inflation data and broader economic performance.
If rates do fall, we could see:
- A surge in buyer demand as mortgages become more affordable
- Renewed upward pressure on house prices
- Faster transaction timelines and increased competition
In other words, if you’re in a position to buy now, there may be value in acting before the crowd. With a rate cut potentially pushing prices up again, the next few months offer a rare period of relative calm where savvy buyers can act decisively, conduct surveys quickly, and complete purchases with minimal friction.
Regional Variation Still Matters
It’s worth emphasising that the housing market is far from uniform. While national averages offer useful insights, local conditions play a major role in shaping price movements and buyer behaviour. In cities like Birmingham, Manchester and Leeds, demand has remained strong, driven by younger buyers and ongoing regeneration efforts. In contrast, parts of the Southeast have seen subdued activity due to affordability concerns.
This reinforces the importance of tailored, region-specific advice and the need for independent surveys that take local market context into account. At Survey Hut, our team works across the north-west to ensure you receive accurate, trusted information specific to your area and property type.
Final Thoughts: Stability Not Certainty
The Bank of England’s base rate decision represents a quiet return to stability in the property market. That stability is creating opportunity, but only for those who are well-prepared, well-informed, and proactive.
If you’re planning to move this summer, now is the time to book your survey. It’s the most effective way to avoid costly surprises and ensure your next step on the property ladder is built on a solid foundation.
Book Your Survey with Survey Hut
We offer a full range of RICS-approved survey types, including:
- Level 2 Home Surveys for conventional properties
- Level 3 Building Surveys for older, larger or non-standard homes
With broad coverage and quick turnaround times, Survey Hut makes it easy to move forward with clarity and confidence.
