Here’s everything savvy investors need to know right now:
🏠 1. Mild Growth in 2025 — Bigger Gains Ahead
Savills expects UK mainstream house prices to rise just 1.0% this year — revised down from earlier estimates due to slower-than-expected activity. Still, the medium-term outlook stays strong, with projected growth of 24.5% over the next five years (2025–29).
📉 2. House Prices Have Stalled… But It’s Not All Negative
Despite growth slowing, prices are still up 2.4% year-on-year, according to major indices. However, monthly dips in June highlight how pricing pressure is mounting in oversupplied regions.
🌍 3. Growth Shifting Away from London
London’s prime market is expected to see slight falls in 2025—mainly due to recent tax changes, including stamp duty and non-dom status reforms. This contrasts sharply with cities in the North and Midlands where prices are still rising.
📍 4. Regional Winners: The North Sparkle
Data shows Northern Ireland leading at +9.5% growth, followed by the North East. Frater Property Partners highlights North West, West Midlands, and Yorkshire & Humber as outperformers in the coming years thanks to affordability and infrastructure-led demand.
🧠 5. Interest Rate Outlook = Golden Ticket
With the UK base rate now at ~4.25% and potential cuts on the horizon, mortgage costs are softening. This, combined with real wages rising faster than inflation, could unlock improved affordability for buyers and renters alike.
🏗 6. Supply Still a Problem
Despite government aims to build 1.5 million new homes, recent data shows England is on track for only ~840,000 by 2029 — falling short by almost half. That means structural undersupply remains a long-term market tailwind.
✅ Investor Insight: What This Means For You
| Factor | Strategic Takeaway |
| Short-Term (2025) | Expect modest growth (1%), especially outside London. Consider buying power now before conditions improve. |
| Regional Focus | London is under pressure. The North, Midlands, and Scotland offer stronger yields and appreciation potential. |
| Interest Rates | Haven’t peaked yet — but cuts give flexibility. Now may be a good moment to lock in deals. |
| Supply Imbalance | Limited new builds offer long-term support for property value and rental demand. |
✨ Final Word
The UK property market in mid‑2025 is quietly holding up. While headline growth may feel muted, the structural drivers—like affordability ceilings, rate cuts, and regional demand—are aligning to support long-term capital appreciation and yield.
Smart investors keep looking ahead, focusing on affordable, high-demand locations with strong infrastructure, and positioning themselves for the next phase of growth.
Read more here:
Build a Stronger Portfolio through Diversification
If you’re looking for help with growing your portfolio across the Northwest, Yorkshire, and the Midlands, then book a free call with one of the team now: https://fraterpropertypartners.com/contact/
