What are buyer’s and seller’s markets and how can I use them to sell my house?
The UK property market has been consistently strong for over three decades, with house prices increasing by 365% from £58,000 in 1990 to £297,000 today. While the market naturally goes through ups and downs, two phases can offer opportunities for buyers and sellers alike.
Research shows that 78% of homeowners don’t know the value of their property, and nearly a third (64%) undervalue their home when selling. Both of these statistics point to the fact that the UK may well be in more of a buyer’s market, where sellers are losing out on their property value.
To help customers navigate the headlines and make informed choices around their house sale, we’ve put together information on what each market looks like and our top advice on how to navigate a buyer’s market.
Understanding a buyer’s market in 2025
Alongside recent interest cuts, economists have suggested that the long-standing market success is starting to deteriorate. This suggests that the UK is going into a buyer’s market.
Common signs of a buyer’s market include a stagnant economy, with flat, or slow GDP growth, rising costs, such as mortgage interest rates, utility costs, or landlord taxes grow consistently, and a fiscal crisis, where the government go through significant financial shortfall.
Often referred to as a “declining market”, this phase often creates significant opportunities and, although it’s known as a buyer’s market, there can still be benefits for those who are looking to sell their house. These include:
- Improved affordability – A declining market offers an opportunity for more people to buy, suggesting that if you were planning on moving house, you could play into this period by selling your house quickly, to get the most value from it before the crash. Then, it would be advised to wait, and purchase a new property when that property, similarly, has decreased in cost.
- Reduced Speculation – A buyer’s market can cool an overheated market, driving out short-term investors who can cause prices to inflate. This can return housing to its primary function – as shelter, rather than a financial asset.
- Market Correction – If prices are artificially inflated, a buyer’s market may simply bring values back to a more realistic level, reducing a longer-term economic risk. This market reset promotes the sustainability of the overall property market.
- Opportunities for investors and developers – Lower prices allow long-term investors and developers to buy undervalued properties, renovate, or build new supply, often revitalising areas.
Our Thoughts on the Housing Market in 2025
We asked one of our property experts to comment on the current state of the housing market and what the rest of 2025 might look like; “Whilst the market’s decline can often be portrayed as a stressful time for homeowners, if handled calmly, and with the right tools, it can be a fantastic opportunity to move. If you are looking to sell your rented property or second home, you might secure a good price at the start of this phase, then buy at a lower cost.”
Overall, it is important to remember that the market is dynamic, and whilst there are periods that are portrayed as optimal, selling your home is a decision you must make when it feels right for you.
“The key is to understand the conditions, plan carefully, and make decisions that work for your personal lifestyle, goals and timeline.”
If you’re looking to sell your house fast, we can offer a free cash offer on your home within 24 hours. Just click here and start your house selling journey today.
