MARKET UPDATE
UK property market update for june 2025
July 1, 2025 • Author: Richard Bradstock
Share On:
June, month of the summer solstice; the longest day in the UK and the slow drift towards holiday mode. But before summer holidays happen upon us, here’s your essential UK property market update. Whether you’re an active investor or watching from the sidelines, we’ll update you on what to expect.
The latest growth stats
Let’s start with recent data that certainly suggests good times. Buyer demand is up 3% on this time last year and annual house price growth edged up to 3.5% in May with properties in the North East, North West and Midlands still transacting well. This is perhaps being led by the fact they are largely immune to the stamp duty changes which have disproportionately affected the South East, South West and London, those being that much more expensive to buy in.
Following a drop of transactions in April following the aforementioned stamp duty changes at the end of March , May saw the busiest number of ‘sales agreed’ in four years and was 13% above the 2017-2019 average. Our take is it’s probably a case of better mortgage deals offsetting stamp duty rises and/or buyers and sellers negotiating more effectively.
Stamp Duty data from HMRC has first time buyers and upsizers driving sales, but in terms of the stamp duty data for landlords, it’s very much business as usual with the number of sales marked for investment or second homes similar to the levels of activity in the previous five years but we would suggest care and attention in terms of how you buy your investment property is more key than ever before. We work with excellent advisors for those looking to reduce their tax liabilities so please do get in touch for a referral.
According to the same stamp duty data 66% of landlords now buy in limited companies, up from 36% in 2020, evidence of how landlords are adapting to increased red tape. That said, it’s exactly the red tape that makes the UK a strong and secure place to invest in property for the medium to long-term, in a market that is ever trying to balance the desires of landlords and tenants. Knight Frank’s Wealth Report, always an interesting read, showed how the vast majority of high net worth individuals regarded real estate as a minimum 9-year investment.
Buying with RPA means that you have access to the best UK investment properties and access to experts with over 20 years experience in the UK property market. All of our investment opportunities are underpinned by research, due diligence and a direct relationship with the developer.
As ever, if you’re looking to buy, or you’re mulling over an investment or just want a general chat about the current market then please do get in touch.
In short, today’s market favours:
1
Active management over passive holding
By which to say, do the numbers, model your cashflow, understand the costs and liabilities associated with buying property – i.e. if you’re buying in Birmingham you should know that in parts of the city, the council now requires landlords to have a Selective License. A good managing agent should inform you of any legislation changes.
We always recommend the award-winning Brick Management & Lettings who let and manage properties across the UK, but they are just one of the many partners we work with that enable us to give our clients and investors access to the full suite of services that a professional landlord requires. This includes tax advice and specialist mortgage providers who cater specifically to overseas landlords.
2
Regional insight over national averages
The UK market is not one monolithic market, there are always locations and pockets which outperform. For example, a lot has been made in the press recently about the slowing of rental growth following the unprecedented double digit annual growth of recent years, yet even in the South East there are pockets showing double digit annual growth such as Croydon at 10.5% this year (Dataloft).
This year so far, the Midlands and North West represent 39% of buy-to-let deals (Techbullion.com) with the North East accounting for 28% and giving impressive gross yields of 9.3% (Moneyweek.com). More reasons to be bullish about Birmingham include the news that the Crown Estate has backed a £1.9bn project in the city centre giving huge confidence to the city that in the same breath has been plagued by HS2 delays once again.
3
Business acumen over hobbyist approaches
There’s little doubt that increasingly regulation has read to the rising professionalism of the sector and although keeping track of changing legislation and taxes might be a headache (again, not if you have good advisors and managing agents!) it’s worth saying that happier tenants, mean happier investments.
Most of the upcoming legislation is skewed towards tenants, but the fact is that tenants are renting for longer now which also works in landlords’ favours as it reduces costs in marketing and new tenant fees. Take a professional approach to your investment by paying attention to:
Location discipline: focus north/Midlands, quantifying yields and tenant demand.
Business structuring: limited companies help manage tax.
Operational readiness: finance compliance, EPC, lettings law preparedness – ensure you have a managing agent that has your back.
Rate-watch vigilance: falling base rates could boost returns late‑25 with a cut widely anticipated in August and another potentially before the end of the year. Speak to your mortgage provider about refinancing or the availability of new deals that could made a huge difference to your bottom line.
Buying with RPA means that you have access to the best UK investment properties and access to experts with over 20 years experience in the UK property market. All of our investment opportunities are underpinned by research, due diligence and a direct relationship with the developer.
As ever, if you’re looking to buy, or you’re mulling over an investment or just want a general chat about the current market then please do get in touch.
Get Expert Guidance on Buying UK Property
FEATURED PROPERTY
london square croydon
From £390,000
Completed
10% Deposit Now
Up to 5-6% Yield
A new centre piece development for Croydon, a 2-minute walk from West Croydon London Underground
About the author
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
Founder & Managing Director
richard bradstock
READ OUR PREVIOUS BLOG POST
Trusted by Our Clients
Discover why our clients love working with us and how our expert guidance helps them navigate the UK property investment market with confidence.
