The UK property market is currently in what we’d call a “steady but cautious” phase. For a comprehensive November 2025 Property Market Update, everyone’s keeping one eye on the market and another on the upcoming Budget announcements. It’s not exactly sluggish, but it’s definitely not the frantic pace we saw a couple of years back.
If you’re thinking about buying, selling, or investing through auctions, here’s what you need to know about the current landscape.
The Current Market Mood
Right now, the housing market feels a bit like everyone’s holding their breath. Buyer demand is down by about 8% compared to last year, and we’re seeing fewer new sales being agreed, particularly in southern England. But before you panic, this isn’t a crash – it’s more like a sensible pause while everyone waits to see what changes might be coming.
The interesting thing is that while fewer people are actively looking to buy, there are actually more homes available on the market. We’ve got nearly 350,000 transactions currently in progress across the UK – the highest backlog since 2021. This creates an unusual situation where sellers have more competition, but serious buyers have better choice.
Properties are taking longer to sell, which isn’t necessarily bad news. It just means the days of gazumping and bidding wars are mostly behind us, replaced by more considered decision-making on both sides.
Regional Differences Tell the Story
One of the most striking things about the current market is how differently various regions are performing. While southern England is seeing the biggest slowdown, Scotland and Yorkshire & the Humber are actually showing more resilient activity. The South West is also holding up relatively well.
This regional split makes perfect sense when you consider affordability. Areas where property prices haven’t reached stratospheric levels are continuing to see steady buyer interest, while the higher-value markets in the south are feeling the pinch of affordability concerns.
For auction buyers, this creates some interesting opportunities. Properties in the stronger regional markets often come to auction for quick sales, and buyers from slower markets are increasingly looking north for better value.
Interest Rates and Affordability
Let’s talk about the elephant in the room – mortgage rates. While they’re not back to the rock-bottom levels we enjoyed a few years ago, they have stabilised somewhat. Most buyers are now working with rates in the 5-6% range, depending on their deposit and circumstances.
The key thing is predictability. Lenders are no longer pulling products overnight, and buyers can actually plan with some confidence. This stability is gradually encouraging more people back into the market, particularly first-time buyers who’ve been watching from the sidelines.
For auction purchases, where you need to complete quickly, having mortgage arrangements sorted beforehand is more crucial than ever. The days of securing a mortgage in a couple of weeks are largely gone.
What Buyers Need to Know
If you’re looking to buy right now, you’re actually in a stronger position than you might think. Yes, mortgage rates are higher than we’d all like, but you’ve got better choice, more time to make decisions, and sellers who are increasingly willing to negotiate.
The key is being realistic about what you can afford and moving quickly when you find the right property. Cash buyers obviously have a huge advantage, particularly at auction, but don’t assume the market has passed you by if you need a mortgage.
Regional flexibility is paying dividends. Many buyers are discovering that moving slightly further out or considering different areas entirely can unlock much better value. This is particularly true for auction properties, where unique opportunities often arise in unexpected locations.
For auction buyers specifically, preparation is everything. Get your finances sorted first – whether that’s cash confirmation or a decision in principle for a mortgage. The best auction deals still move fast, even in a slower market.
Seller Realities
If you’re selling, the harsh reality is that you need to price realistically from the start. The days of testing the market with an optimistic price and seeing what happens are largely over. Properties that are priced right for the current market are still selling reasonably well, but overpriced properties are just sitting there.
This doesn’t mean you have to give your property away, but it does mean doing proper homework on what similar properties are actually selling for (not what they’re listed for). Your estate agent should be giving you honest advice, not telling you what you want to hear.
For sellers considering the auction route, it can actually be a smart choice in the current market. Auction provides certainty – you’ll either get your reserve price or you won’t sell, but you won’t be sitting on the market for months wondering what’s happening.
The Auction Advantage
Speaking of auctions, this is where things get interesting. While the traditional property market is showing signs of caution, the auction market remains relatively robust. This is partly because auction properties often represent better value, but also because the auction process attracts serious, prepared buyers.
For sellers, auctions offer several advantages in the current market:
- Speed and certainty of sale
- No chain complications
- Competitive bidding environment
- Exchange happens on auction day
For buyers, auctions provide:
- Transparent process
- Potential for below-market purchases
- Wide variety of property types
- Quick completion
At Palace Auctions, we’re seeing continued strong interest across all property types, from residential investments to commercial opportunities. The key difference is that buyers are being more selective and doing more thorough due diligence before bidding.
Investment Outlook
Property investors are taking a measured approach. Rental yields remain attractive in many areas, particularly outside London and the South East. With rental growth forecast around 4.5% for 2025, buy-to-let remains viable for investors who choose their properties carefully.
The auction route is particularly attractive for investors because it often provides better yields and faster completion. However, investors need to be more careful about factors like ground rent, service charges, and potential development opportunities nearby that might affect future values.
Commercial property auctions are also seeing steady activity, with everything from retail units to industrial spaces finding buyers, though due diligence is more important than ever.
Looking Ahead
As we move towards 2026, most experts expect the market to gradually pick up pace, particularly if mortgage rates continue to stabilise or even edge down slightly. The key factor will be confidence – both consumer confidence and confidence in government policy stability.
For Palace Auctions, we’re adapting by providing even more detailed lot information, offering additional viewing opportunities, and ensuring our legal packs are comprehensive. We’re also seeing more people attending auctions for the first time, so we’re putting extra effort into explaining the process and helping newcomers feel confident about participating.
The current market isn’t about dramatic crashes or sudden booms – it’s about finding the right opportunity at the right price. Whether you’re buying your first home, upgrading, investing, or selling, the key is working with professionals who understand both the current market conditions and the specific dynamics of your local area.
The property market has always been cyclical, and while we’re in a quieter phase right now, this often creates the best opportunities for those willing to act decisively when they find the right property at the right price.
For more information about upcoming auctions and how we can help you navigate the current market, visit Palace Auctions or speak to our team about your specific requirements.
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