Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
“UK Housing Market ‘Dead’? Kirstie Allsopp’s Warning Examined – Is it Really That Bad?
Vicky Parry
25th Sep 2025
The UK property market has been under scrutiny for months, and TV presenter and property expert Kirstie Allsopp has voiced strong concerns about affordability and sustainability. From soaring house prices to stretched mortgage costs, Allsopp has warned that the market is “dead” — though what she means is more nuanced than a literal collapse. In this article, we explore her comments, what the data says, and what it means for buyers and investors in 2025.
What Kirstie Allsopp Is Saying About the Market
Kirstie Allsopp, best known for Location, Location, Location, has been outspoken about the strain on the UK housing market. In an interview with The Telegraph, she highlighted the dramatic rise in property prices over the past two decades. She pointed out that a four-bedroom semi in Yorkshire that cost around £124,000 in 2001 had risen to roughly £350,000 in 2018, and recently reached £495,000.
“All the tweaks, whether Stamp Duty or small policy adjustments, aren’t enough. What we need is a reset,” Allsopp told The Telegraph, emphasizing that such price growth is simply not sustainable for most people.
When she says the market is “dead,” Allsopp isn’t suggesting properties are worthless. Instead, she’s referring to:
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Affordability pressures: Many potential buyers are being priced out as property prices continue to rise faster than wages.
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Supply-demand imbalances: The number of homes available in many areas remains far below demand.
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High borrowing costs: Rising interest rates have made mortgages more expensive, squeezing both buyers and landlords.
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Potential price stagnation: Certain local markets or property segments may see stagnation or even falls due to these pressures.
What the Data Shows
Allsopp’s concerns are supported by several recent statistics and forecasts:
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Modest house price growth: UK house prices are growing at approximately 1–4% per year in many regions. Knight Frank predicts about a 3.5% increase by the end of 2025, far below the double-digit growth seen in previous decades.
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Regional variations: London has seen weak growth, whereas areas in the North and Midlands remain more affordable and may offer better rental yields.
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Buy-to-let yields: Rental yields in England and Wales averaged 7.4% in Q1 2025, with some regions performing even better. For investors relying on rental income, this shows there is still opportunity — though costs and taxes need to be carefully considered.
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Affordability constraints: Mortgage rates and high property prices relative to income continue to price many buyers out of the market.
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Supply pressures: Expected increases in housing stock are small, and planning reforms have not yet significantly alleviated shortages.
Is the Market Really “Dead”?
Not exactly. While Allsopp’s description highlights genuine challenges, the market still offers opportunities for buyers and investors who are strategic:
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Some areas are still functional: Locations with strong demand, good amenities, and reasonable prices continue to see activity.
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Speculative upside is limited: Rapid, guaranteed growth is unlikely, so investors should temper expectations.
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Certain markets are fragile: Expensive areas or low-yield segments may face stagnation or small real-term declines.
Tips for Buyers and Investors in 2025
MoneyMagpie readers should approach the property market with caution but informed optimism. Here’s what to consider:
1. Focus on the Right Location
Look outside London and the South East for lower prices but strong demand. Consider properties near schools, transport links, and local regeneration projects. Avoid overpaying for prestige locations with weak rental yield or growth potential.
2. Be Clear on Your Goal: Income vs Capital Growth
If relying on rental income, ensure rents cover mortgages, maintenance, voids, and taxes. For capital growth, be realistic — appreciation is likely to be modest, and long-term holding may be required.
3. Stress Test Your Finances
Assume interest rates could rise again. Factor in all costs, including repairs, insurance, letting fees, and compliance with regulations.
4. Consider Alternative Investment Routes
Shared ownership, co-ownership, housing co-ops, or Real Estate Investment Trusts (REITs) may offer more accessible ways into property without the full risk of direct ownership.
5. Monitor Policy Changes
Keep an eye on Stamp Duty, mortgage regulations, landlord tax rules, and planning reforms, as changes can impact returns.
6. Accept the Risks
Markets may stagnate or correct in overheated areas. Selling property can take time, and regulatory changes could introduce unexpected costs.
Verdict: Is Property Still a Solid Investment?
Yes, but conditions have changed. Property in the right location, purchased at a fair price, and managed with realistic expectations for rental yield and capital growth can still be a solid investment. However, “easy money” is over — high mortgage costs, affordability issues, and supply constraints mean that success requires careful planning, research, and patience.
Final Thoughts
Kirstie Allsopp’s warning about the market being “dead” should be taken as a cautionary signal rather than a literal verdict. The UK housing market in 2025 is under strain, but savvy buyers and investors can still find opportunities. Understanding regional variations, staying informed on policy, and keeping a long-term perspective are key to navigating today’s complex property landscape.
Jasmine Birtles, CEO of MoneyMagpie.com says the market has been dead in some places, for for some time now and she blames the government’s dire tax predictions for the Autumn Budget. “High net-worth buyers are keeping away from the market right now because of the threat of annual taxes on properties worth above £500,000,” she says, “and property developers are holding back because of the threat of National Insurance fees for buy-to-let properties. There is still movement in the lower value properties where people are looking to live in them, but higher-priced properties are often not even selling when they bring the price down.
“Both property and businesses generally are doing poorly right now. Both are adversely affected by uncertainty – of which we have bucket-loads right now – and by legislators who want to punish profit. I suspect that property will be in the doldrums for a couple of years, or at least until the government changes its policy of taxing those that are productive in order to waste it on unproductive projects.”
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