Will There Be a Reading House Price Crash in 2025?
In early 2023, most property forecasters were predicting a serious downturn in the UK housing market. Halifax estimated an 8% drop, Savills forecast 10%, and Nomura Bank even warned of a 15% fall. These predictions made national headlines — but what actually happened tells a very different story.
According to the UK Land Registry, house prices are currently 1.76% higher than in January 2023, and in Reading, average house prices are only 2.55% lower. In real terms, we’ve seen price stability — not the crash so widely anticipated.
Now, halfway through 2025, many are asking again:
Is a Reading house price crash coming this year?
Based on current market data, expert forecasts, and what we’re seeing locally at Bespoke Estate Agents, the answer is a clear no.
Reading House Prices in Context
It’s true that UK property prices dipped slightly in early 2025. Nationwide reported a 0.8% fall in June — the steepest monthly drop in two years — and the Land Registry’s April figures showed a 2.8% annual decrease. But let’s be clear: these are modest corrections following the extraordinary pandemic-fuelled growth of 2020–2022. The market isn’t crashing — it’s simply normalising.
Even Rightmove, which tracks asking prices rather than completions, reported just a 0.3% drop in June, attributing it to increased supply and the fading effects of temporary stamp duty reliefs.
Data That Predicts the Future
A key insight comes from Denton House Research, which monitors £ per square foot at the point of sale agreed — not completion. Their data leads the Land Registry by five months and correlates with 98% accuracy.
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In January: £338.67 per sq.ft.
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Today: £346.25 per sq.ft.
That’s a 2.24% rise in pre-completion pricing, which tells us that national house prices will likely be higher by January 2026. It’s another clear indicator that we are not heading for a crash.
What’s Happening in Reading?
Let’s look at Reading property sales volume — a reliable indicator of market health.
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H1 2024: 1,579 homes sold (subject to contract)
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H1 2025: 1,627 homes sold
That’s a year-on-year increase in buyer activity — suggesting growing market confidence.
In July 2023, there were 1,317 homes for sale in Reading. Today, that number is 1,706. This increase in supply means buyers have more choice, reducing bidding wars but maintaining steady demand. It’s a balanced market, not a distressed one.
Why Reading Prices Remain Resilient
1. Falling Mortgage Rates
After peaking above 6% in 2023, mortgage rates have stabilised. Many fixed-rate deals are now below 4.5%, and the Bank of England is expected to cut its base rate further. Improved affordability supports buyer confidence.
2. Strong Labour Market
With unemployment at 4.6% and wage growth holding at 5.2%, most households are not under financial stress. That reduces the risk of forced sales, which are typically what trigger price crashes.
3. Stricter Lending Rules
Thanks to the Mortgage Market Review in 2014, borrowers have had to pass stress tests at 6.5–8%. This means the vast majority of homeowners can afford their mortgages even in today’s rate environment. Unlike in 2007–08, the housing market has been built on solid foundations.
4. Rising Rents
Rental prices in Reading continue to rise. This encourages more first-time buyers and reduces rental stock as some landlords exit the market. This added pressure helps support first-time buyer demand, especially in affordable areas like RG1, RG2, RG30 and RG6.
National vs Local: Regional Trends Matter
It’s worth noting that while some parts of London and the South East have seen small declines, other areas — especially in the North of England, Scotland, and Northern Ireland — continue to see moderate growth.
Reading sits in a unique position: still relatively affordable for the South, with strong commuter links, a vibrant economy, and a desirable lifestyle mix. These factors help buffer it from broader downturns.
So, Will House Prices Crash in Reading?
It’s highly unlikely.
A true housing crash requires a perfect storm:
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Mass unemployment
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Mortgage rate spikes
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Lending restrictions
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A surge in repossessions
None of these conditions are present. Even external shocks — like slower rate cuts or political change — are more likely to cause small dips or pauses, not a crash.
Our View at Bespoke Estate Agents
Here at Bespoke Estate Agents in Reading, we’ve seen continued confidence from buyers and sellers across RG1, RG2, RG30, RG31 RG4, RG5 and RG6. Listings are picking up, viewings are strong, and sales are being agreed steadily — not at fire-sale prices, but with realistic, well-advised sellers and serious, motivated buyers.
If you’re considering selling, buying or investing in 2025, this is a market to approach with knowledge, not fear. Tune out the national headlines and focus on the facts — particularly in your local area. If you are not sure which part of Reading is perfect for you then read our insights into different locations Area Guides | My Bespoke Agent
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