Navigating the 2025 Housing Market: Why Selling First is Key

The UK housing market is going through a bit of a rollercoaster ride right now. With house prices rising in some areas but demand cooling off in others, buyers and sellers alike are facing new challenges. If you're thinking about moving, one of the biggest questions is: Should you sell your home before finding a new one?

What’s Happening in the Market?

Recent data shows that UK house prices rose by 0.4% in February, but annual growth has slowed to 3.9%, down from previous months. At the same time, the number of buyers entering the market has dropped, with reports from the Royal Institution of Chartered Surveyors (RICS) showing the lowest buyer interest since late 2023.

One of the main reasons for this shift is upcoming stamp duty changes. Many buyers rushed to complete purchases before tax increases, creating a short-term spike in activity. However, as this rush fades, experts predict the market may slow further.

At the same time, the Financial Conduct Authority (FCA) is considering loosening mortgage lending rules, which could help more people buy homes—but also raises concerns about affordability and financial risk. With all this uncertainty, moving home requires careful planning.

Why Selling First Makes Sense

If you already own a home and are thinking of buying, one of the smartest things you can do right now is sell your property before committing to a new one. Here’s why:

• You’re in a stronger position as a buyer – Sellers prefer offers from buyers who aren’t relying on selling another home. This makes you more attractive to sellers and can help you secure a better deal.
• You avoid the risk of a property chain collapse – Buying before selling means you’re dependent on your own sale going through. If it falls apart, you could lose your dream home.
• You know exactly how much you can afford – Once your house is sold, you’ll have a clear budget for your next purchase, avoiding any surprises.

What’s the Catch?

Of course, selling first does come with a few potential downsides:

• You might need temporary accommodation – If you don’t find a new home quickly, you could end up renting or staying with family for a while.
• House prices could rise while you’re between homes – If the market picks up, you might end up paying more for your next property than expected.

Despite these factors, many experts still recommend selling first—especially in a cooling market where homes aren’t selling as quickly as they were a year ago.

Final Thoughts

With market conditions shifting, now is the time to be strategic about moving home. Selling first gives you more control, financial clarity, and a stronger position when negotiating your next purchase. While it may mean a bit of uncertainty in the short term, it could save you a lot of stress and money in the long run.

If you're thinking about selling, make sure to get a valuation and understand the local market trends. Need advice? We’re happy to help guide you through the process.