Should I buy or keep renting in 2025?

So, you’re in your 20s or 30s, living the grind, and trying to figure out whether buying a house in 2025 is a smart move, or if it’s better to just keep renting. The idea of owning your own place sounds exciting, right? But then reality hits — the price tag, the market, and all those questions that swirl around in your head. So, what’s the deal?

Let’s break it down. Here's the truth about whether you should be jumping into the property market or just keep renting for a bit longer.

The Case for Buying in 2025:

1. Interest Rates Are High... But So Are Rent Prices

Yes, interest rates are higher than they've been in the last couple of years. But here's the thing: rent prices aren’t exactly dropping either. In fact, they’re sky-high, and they’re not showing signs of slowing down anytime soon.

If you’re paying a few thousand a month for rent, you could be throwing that money into a mortgage. Whilst the interest rates might sting a little bit, once you’ve paid off your mortgage, the house is yours; albeit this will most likely take years to do.

2. You’re Sick of the Landlord Life

Let’s face it — living with a landlord’s rules can get old. Maybe your lease is up, and you’ve had enough of being told:

• You can't paint the walls that cool shade of blue.

• You can't have a pet.

• You can’t even hang a picture without getting a lecture about holes in the wall.

  
  

Homeownership means freedom — no more asking for permission to customise your space or wondering when your rent is going to increase.

3. It’s a Long-Term Investment

Property is usually a solid long-term investment. In the right location, your home could increase in value over time. So, whilst the upfront costs might be tough to swallow, owning your home could pay off in the long run. Plus, once your mortgage is paid off, you won’t have to worry about rising rent prices anymore.

The Case for Renting in 2025:

1. High Initial Costs (Hello, Deposit)

The upfront costs of buying a home are no joke. The deposit alone is a massive chunk of change, plus you’ve got closing fees, stamp duty, legal fees, and potentially a survey or home inspection cost. If you don’t have a solid chunk of savings, buying can feel like an impossible mountain to climb.

When you rent, the only big cost you have to worry about is the deposit (which, let’s face it, is way more manageable than a 20% deposit on a £400,000 home). If you’re in a position where saving for that down payment feels years away, renting might be the more practical option for now.

2. Uncertainty in the Market

The property market is notoriously unpredictable. In 2025, prices are still fluctuating, and predictions about future price growth are mixed. Yes, property can appreciate, but it can also decrease in value, depending on the market. If you buy at the wrong time, you could end up paying more than your home is worth.

Renting, on the other hand, gives you more flexibility. You’re not tied down, and you can adjust based on the market. If things are looking bad, or you find a better place to live, you can pack up and move without the financial headache of selling your home.

3. Maintenance Woes Are Not Your Problem

One of the best parts about renting? When something breaks, you’re not the one responsible for fixing it. If the heating goes out or the roof leaks, it’s the landlord’s problem, not yours. In a house you own, these issues could be costly — and it’s all on you to handle repairs, which can be a massive financial and emotional burden.

So, What’s the Verdict? Should You Buy or Keep Renting?

At the end of the day, the decision comes down to what fits your personal situation.

Here are the big takeaways:

• If you’ve got a steady job, a decent savings cushion, and are ready to commit long-term, buying could make a lot of sense. It’s an investment in your future, and while it might seem daunting, getting onto the property ladder earlier rather than later could pay off down the line. Plus, who doesn’t want to stop paying rent?
  

• But if you’re not quite ready to settle down, or if you don’t have enough saved for that big deposit, renting gives you flexibility. You can save up more, take advantage of lower rent prices (in some areas), and keep your options open. If you are looking to start a business, take a career break or go travelling then renting allows you to do that more easily than if you were to purchase a property. The property market can be unpredictable, and renting allows you to ride out the storm whilst you wait for the right moment to buy.