Spoiler: Only if they split it with their cat and rent it on Airbnb twice a week.
🟢 At a Glance
UK house sales just hit their highest level in 4 years, according to Zoopla, Rightmove, and every other estate agent who’s suddenly smiling again.
But while homeownership is technically “up,” most millennials and Gen Zs are still asking:
“Do I buy this studio flat in Croydon or just move to Poland and start over?”
Yes, mortgage approvals are rising. Yes, prices are cooling.
But affordability? Still in ICU.
🏚️ Quick Stats That Will Make You Cry (May 2025)
| Metric | Value |
|---|---|
| Average UK Home Price | £283,000 |
| Avg London Price (Zone 2) | £530,000+ |
| Avg Mortgage Rate (5-year fixed) | 5.9% |
| Avg Deposit for First-Time Buyer | £67,000 |
| Avg Salary of First-Time Buyer | £32,000 |
Translation: You need two incomes, a rich aunt, and a mild gambling addiction to buy property now.
🧠 Why Are House Sales Rising?
1. 📉 Mortgage Rates Have Stabilized
- Post-BoE pause, banks are offering sub-6% fixed rates
- That’s “affordable” in 2025 terms
- But still double what your uncle paid in 2012
2. 🧊 House Prices Are Cooling
- Average prices are down 2–3% YoY in most regions
- London = flat
- Scotland = rising
- Northern Ireland = still cheaper than a Honda Civic
So people are rushing in thinking: “Bottom aa gaya kya?”
(Spoiler: Not yet, beta.)
3. 💼 Government Schemes Are Back
- “First Homes” discounts
- Shared Ownership 2.0
- Rumoured ‘Stamp Duty Waiver Reloaded’ in pre-election budget
Translation: “Let’s give you just enough support to take on 35 years of crushing EMI.”
🧾 The Hidden Cost of Ownership in 2025
| Category | Monthly Cost (London 1BHK, £500K) |
|---|---|
| Mortgage EMI (90% LTV @ 5.9%) | ~£2,650 |
| Council Tax | ~£180 |
| Service Charges | ~£300 |
| Utilities + Internet | ~£220 |
| Groceries | ~£500 |
| Peace of Mind | ❌ Not available |
That’s over £3,800/month just to exist in a one-bedroom cube with exposed brick and existential dread.
🧠 EduInvesting Take
This isn’t a housing recovery. This is a last gasp before the mortgage bomb explodes again.
- Prices down slightly = illusion of affordability
- Sales rising = desperation + election-year schemes
- Real estate agents = rebranding their 1BHKs as “future crypto farms” to attract Gen Z
And if you think this is just a UK problem…
🗺️ Across Europe: The Crisis Is Continental
| Country | Average Price (per sqm) | First-Time Buyer Pain Level |
|---|---|---|
| 🇩🇪 Germany | €4,500/sqm (Berlin) | 😬 Rents up, buying frozen |
| 🇫🇷 France | €10,000/sqm (Paris) | 🥖 Buy only if you marry rich |
| 🇳🇱 Netherlands | €5,200/sqm (Amsterdam) | 🚲 Move to Rotterdam instead |
| 🇪🇸 Spain | €2,100/sqm (Madrid) | 🏖️ Still cheaper, but wages low |
Even Switzerland, where salaries are high, has seen affordability plummet.
Mortgage-to-income ratios are now at 2008 levels across most of Europe.
📉 Is This Sustainable?
Short answer: No.
Slightly longer answer: Hell no.
- Rates may drop in late 2025, but not drastically
- Wage growth < inflation in most of Europe
- Housing starts are declining
- Landlords exiting the market = rent hikes incoming
We’re witnessing the slow zombification of the property market: it’s walking, it’s moving, but it’s mostly dead inside.
💀 The Gen Z Homebuyer Experience in 2025
- ✅ Opens Rightmove
- ✅ Filters: “Any” location, “Max £300K”
- ✅ Result: “A cardboard box in Slough with a garden gnome”
- ✅ Adds to wishlist anyway
- ✅ Applies for pre-approval, gets rejected for having Spotify Premium
🧯 So What’s the Solution?
- ✅ Massive housing supply boost (unlikely before 2028)
- ✅ Interest subsidies (burns the treasury)
- ✅ Salary growth (you’re funny)
- ✅ Rent control (will never pass in Parliament)
At this point, the only practical solution is co-owning property with your future ex or buying a van and calling it “mobile lifestyle freedom”.
📌 Final Words
Yes, UK house sales are up.
But don’t mistake activity for affordability.
People aren’t buying because it’s affordable.
They’re buying because they’re scared it might get worse.
The real housing boom will come when:
- Prices fall 20%
- Rates dip below 3%
- Gen Z starts earning enough to buy without selling their childhood kidney collection
Until then?
🏡 This isn’t a market. It’s Monopoly with real consequences.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
📁 Tags: UK housing crisis, Europe property bubble, mortgage rates 2025, gen z homebuyers, affordability crisis, EduInvesting
