House prices dropping due to supply rises

December 8, 2025 by Brendan O'Neill

House Prices

Mortgage advisors have stated that house prices in the UK are now returning to pre-Covid-19 levels, due to a combination of increased housing stock and living cost pressures.

This is a viewpoint that is supported by the property search website Zoopla. It revealed recently that the sales pipeline at the moment is the biggest it has been in four years. It also indicated that sellers would be required to lower their asking prices in response to more homes being available on the market and rises in the costs associated with moving. All of this points towards a more favourable market for homebuyers next year.

Some advisors are arguing that this process has already begun. Kevin Gibson works for Ascot Bridging Finance and he told Mortgage Introducer that sellers have started to revise their expectations:

“The market has moved on from the pandemic highs, and most people now understand that pricing sensibly is the best way to secure a buyer and keep their own onward plans on track.”

Gibson went on to say that the beginning of next year should bring further supply increases, which will give those buying more options. He added that the result of that was an almost certain rebalancing of the power between sellers and buyers – and more balanced house pricing.

In conclusion, he said that another consequence of all this was the rising popularity of bridging loans. These are being used to buy new homes prior to existing ones being sold.

Advisors with CeMAP training will regard this as good news, after a year of affordability pressures.