Why You Should Buy a House in 2025
Renting vs. buying a house is a big point of contention. While some think getting onto the property ladder as soon as possible is essential, others believe there is no need for house ownership and that renting is the way forward.
If you have stumbled across this blog, you are likely caught up in the same debate. Deciding between the two can be challenging, and if you need to make a decision in 2025, it can be difficult to base your decision on what has unfolded in 2024.
The housing market has been fluctuating, making it difficult to determine whether it is better to rent or buy a house.
At Lyons Estates, we have seen the impact of the changes to the housing market over the last year, so we think it is important to understand which option is best for you.
In this blog, we will review just some of the reasons why you should consider purchasing a property in 2025.
What Will The Housing Market Look Like in 2025?
Many factors will impact the state of the housing market in 2025. As Britain’s political landscape remains unsteady and the demand for sustainable living spaces increases, it can be easy to presume that we will experience fluctuations in property costs.
Despite past fluctuations, you may be glad to learn that property values have, in fact, shown a consistent upward trajectory. This means that buying a home in the next year is going to be a worthwhile investment with the potential for it to grow in value.
Interest rates for mortgages are also relatively competitive, so now is the time to secure a mortgage. People often wonder, ‘Is owning a home cheaper than renting one?’ but it is important to remember that when you rent, it may be cheaper initially, but you are receiving no long-term gains.
So, if you’re wondering if buying a house is an investment you can depend on based on current predictions, the answer is yes.
Renting and Owning: The Rental Market in 2025
In contrast, rental costs are continuing to rise. The rental market is in high demand, especially in popular areas, which means the cost of renting a property is higher than ever.
These increased costs only seem to be growing, and there is a lot of economic pressure on renters as wages are now growing in line with the cost of renting. Many people are now turning to buying to ensure financial stability.
The Cost of Buying
While the cost of purchasing a property will differ depending on location, we can make some estimations based on the current trajectory of housing market prices. Our predictions for the 2024 housing market were fairly accurate, so we believe these predictions are too.
Luckily for first-time buyers, there are now some initiatives in place in which you are only required to pay 5% of your deposit if you get a mortgage, which is great for anyone looking to get on the property ladder.
In the North of England, in places such as Liverpool, property values are predicted to grow by 5% in 2025, and this trend looks set to continue, so 2025 is likely to be the best time to buy.
The Cost of Renting
The cost of renting is predicted to continue rising in 2025. There is currently a supply imbalance between those needing a property to rent and the available properties, so prices are continuing to increase.
Renters in big cities can expect to lose thousands of pounds per month. Places such as London have seen rents climb over 10% in the last year, and this trend shows no sign of stopping.
With this in mind, it’s no wonder more and more people seek security when buying.
House Ownership: The Advantages of Owning a Property
If you are still unsure whether or not owning a property is the right choice for you, here are some of the advantages of house ownership.
Long Term Investment
By purchasing a property, you are making a long-term investment and building equity. In the current uncertain economic climate, having tangible assets is essential.
Even if you have no intention of keeping the property for the rest of your life, with the current growth in property value, you may make a considerable profit if you purchase it now and sell it in the future.
Stability
One of the biggest arguments in the renting vs. buying debate is stability. Though renting rights are improving, when you rent a property, it is never really yours, and you are always at risk of being removed from it.
When you own a home, you don’t have the same fear of losing your property at a moment’s notice, and you can relax knowing that you have a property that is entirely yours as long as you are keeping up with the necessary payments.
Control Over the Property
When you own a property, you have full control over its appearance. There is nothing worse than moving into a rented property with dated decor that does not match your taste and having no ability to change it.
When you purchase a property, you have full control over how it looks, and you can ensure that the house’s style matches your style and personality.
The Drawbacks of Renting
At Lyons, we strongly believe that becoming a homeowner is the way forward, but we do understand why some people would choose to rent. Some of these reasons include:
- The flexibility to move.
- The landlord carries out maintenance.
- Allows you to work towards a mortgage.
- Fixed rent.
Though there are advantages to renting, with the cost of renting continuously increasing, we want to ensure that everyone is aware of the risk before they make the commitment. Here are some of the drawbacks of renting.
Instability
Most landlords only provide one-year contracts, which you are expected to renounce. However, there is no guarantee that the landlord will also choose to renounce the contract, and you could be left in a situation where you have to find a new property.
This is particularly worrying if you have invested a lot of money and time into making the property a home and have to move on to a new one.
No Returns on Your Investment
When you rent a property, you are spending potentially thousands every month on a property that you are expected to eventually leave. To put it into perspective, imagine investing thousands in art, only for someone else to own it.
This means that if you live in a property for five years and then leave, you have nothing to show for the investment you made.
Potential For Rent Increase
One issue that you may encounter when renting a property is the potential for your rent to be increased. You could stay at a property for a year for a rental price you are happy with, and then when your contract expires, your landlord could drastically increase the rental price.
This can leave renters feeling incredibly insecure, as they could have to find a new property at any moment because their financial situation does not align with the landlord’s expectations.
Take The First Step Onto The Property Ladder With Lyons
Hopefully, this blog has clarified the benefits of owning your own property. Though we understand not everyone is currently in the financial position to own a property, we believe that it is certainly something that should be worked towards in 2025 to secure a better and more secure financial future.
If you are interested in climbing the property ladder or you would like to know more about the buying process, do not hesitate to contact our team today, we’re happy to answer any questions you may have.