This week’s updates offer a clear signal that the UK property market is entering a new phase. From climbing rents and steady buyer demand to a continued drop in landlord participation and sweeping leasehold reform, the direction of travel is becoming harder to ignore. Here’s what stood out.

Rental growth remains high but begins to steady

According to the latest figures from the Office for National Statistics, UK private rents increased by 6.7 percent in the twelve months to June 2025. This marks a slight dip from May’s 7 percent, but still outpaces inflation, which currently sits at 3.6 percent. The average rent across the UK has now reached £1,344 per month.

London continues to lead the way with an annual increase of 7.3 percent, pushing average monthly rents to £2,252. Meanwhile, the North East saw one of the strongest annual uplifts, with a 9.7 percent rise. Although the rate of growth is easing, demand remains strong, particularly in urban centres. For landlords, the message is clear. Retention, maintenance standards, and efficiency are becoming more important than pushing for further increases.

Landlords continue to leave the sector

For the eleventh consecutive month, landlord instructions have declined. The latest RICS survey puts the lettings instruction index at negative 21. This aligns with data from the Bank of England, which shows that buy-to-let mortgages now account for only 8 percent of new lending. This is one of the lowest figures seen in decades.

Many landlords are citing rising costs, tax changes, and a tougher compliance environment as reasons for exiting. As portfolios shrink, tenant demand is not following suit. This imbalance is likely to put continued pressure on the remaining supply, while also rewarding those who operate with a high level of professionalism and compliance.

House prices hold steady while buyers return cautiously

The average UK house price rose by 3.9 percent in the year to May 2025, up slightly from 3.6 percent in April. However, most indices suggest that prices are flat on a month-by-month basis.

Some areas are still showing strong annual growth, such as Scotland at 6.4 percent and Northern Ireland at 9.5 percent, while regions like London are beginning to level off.

Buyer enquiries are back in positive territory, with RICS reporting a 3 percent increase in June. This does not necessarily suggest a price rally is coming. What it does indicate is that buyers are watching the market more closely and are prepared to act when value aligns with their expectations.

Leasehold reform and rent review legislation are on the table

Labour’s proposed Leasehold and Commonhold Reform Bill is gaining traction. The plan would ban new leasehold flats, cap ground rents, and simplify how leases are structured and sold. In parallel, the English Devolution and Community Empowerment Bill aims to eliminate upward-only rent reviews in new commercial leases.

These changes are designed to rebalance the relationship between property owners and tenants. For landlords and commercial investors, this means it is time to revisit lease structures, forecast models, and legal compliance. What was once standard practice may no longer be acceptable under the new regulatory landscape.

This Week’s 3 Golden Nuggets

This week, we hear from Mitch Nunn, an ex-locksmith turned property investor, who shares how he scaled his portfolio to eight figures.

1. “You control the asset and as the property price increases you benefit wholly.”
Mitch explains the power of leveraging bank finance to scale fast. By using a 75% loan-to-value mortgage, you only put in 25% of the capital—yet you benefit from 100% of the capital growth. For example, if a £100k property rises by 10%, that’s a £10k gain on a £25k deposit—a 40% return on investment. It’s this kind of compounded leverage that turns modest deposits into multi-million-pound portfolios over time.

2. “It’s a ‘get rich for sure’ scheme, but it’s definitely not quick!”
Despite owning 50 properties and collecting 90 rents a month, Mitch emphasizes that wealth in property is built through consistency and time, not hype. He attributes his success to The Compound Effect—taking small, consistent actions over years. The takeaway? Stay focused, stay patient, and let time do the heavy lifting.

3. “Scaling to an eight-figure property portfolio requires leverage in many forms – capital, labour and your network!”
For Mitch, scaling isn’t just about money—it’s about relationships, systems, and mindset. He encourages building a strong team, documenting your journey to attract capital, and letting go of tasks like property management. When you stop answering leaky boiler calls and start thinking like an investor, your business can truly grow.

Summary

This week’s news reinforces what many experienced investors already know. The property market is not slowing, but it is changing. Rental growth remains strong. Landlord numbers are falling. Buyer activity is steady but cautious. And the legal and regulatory framework is being reshaped from the ground up.

This week, the property market continues to reveal deeper shifts that investors and landlords need to be paying close attention to. From a slowdown in rental inflation to a quiet exodus of landlords and reforms to commercial leases, the market is demanding a more strategic and measured approach than ever before.

Rental inflation is cooling, but remains above earnings
Private rental prices in the UK rose by 7.0% in the 12 months to May 2025, slightly down from April’s 7.4%, according to the latest data from the Office for National Statistics. While this may point to early signs of stabilisation, rents are still rising faster than wages in most regions, particularly in London where growth exceeds 10%.

This trend is beginning to shift the focus for landlords. With affordability tightening for tenants, the days of regular rent hikes may be numbered. The opportunity now lies in tenant retention and smart management. Landlords who prioritise lower turnover and efficiency may find more consistent returns as growth steadies.

Landlord supply continues to fall
The Royal Institution of Chartered Surveyors (RICS) reports a decline in landlord instructions for the eleventh consecutive month. Their lettings index currently sits at –21, indicating that more landlords are selling or exiting the market than entering it.

Supporting this, the Bank of England has reported that buy-to-let mortgages now account for just 8% of new lending—a record low. With ongoing licensing costs, tax burdens, and regulatory pressure, many landlords are opting to offload assets rather than adapt to new demands. For those staying in the market, this could result in fewer competing listings and stronger demand from tenants, but it also means tightening margins and the need for full compliance.

House price growth has stalled
House prices grew by 3.5% in the year to April, with the average UK home now valued at £265,000. However, this is a notable drop from the 7.0% annual growth recorded in March. Halifax’s data shows prices have largely held steady in May, with a small 0.5% rise, while other indices suggest minor month-on-month falls.

Interestingly, buyer demand has picked up slightly. The latest RICS residential report shows new buyer enquiries rose in June for the first time in several months. But this doesn’t necessarily mean a price rebound. Instead, we’re likely to see a more balanced market, where deals are being made—but only at the right price.

Commercial leases face legislative reform
The government’s English Devolution & Community Empowerment Bill will ban “upward-only” rent reviews on new commercial leases. This clause, common in office and retail spaces, has long favoured landlords by locking rents into only one direction—up. Its removal means future lease agreements will need to allow for rents to decrease as well as rise.

This could have a stabilising effect on commercial occupancy, especially for small businesses, but it may also force landlords to rethink how they structure future leases and manage long-term income expectations. For investors with exposure to high-street or office units, it’s a moment to revisit rental models and consider tenant resilience more carefully.

Second-home hotspots increase pressure on owners
Local authorities in areas like North Wales are escalating their crackdown on second homes. New measures include 300% council tax premiums, tighter planning regulations, and higher land transaction taxes. These moves are designed to tackle local housing shortages, but they’re also beginning to change the economics of investing in holiday lets and secondary residences.

In the short term, the policies may deliver more housing stock back to the local market. In the long term, however, they could dampen demand for rural or coastal property investment if similar policies are adopted nationwide.

In summary
This week’s updates paint a clear picture. The market is still active, but it’s shifting fast. Rental growth is tapering, landlords are reducing stock, and both residential and commercial investors are being nudged toward tighter, smarter operating models. The era of passive income is giving way to one of proactive management and deliberate strategy.

This Week’s 3 Golden Nuggets from Jackie Collier

1. “Buy your own property and lease it to a housing association (HA).”
Jackie’s biggest advice for those wanting to help people without exposing themselves to high risk is to own the asset outright. Leasing to an HA gives you guaranteed rent, no management fees, and minimal maintenance costs, all while keeping ownership of the property—making it a far safer alternative to handing your money to a third-party scheme.

2. “There are three levels of social housing… Basic, Intermediate and High-level.”
Understanding these categories is crucial. Jackie outlines that Intermediate-level housing—her preferred model—often comes with 3–5 year leases, no voids, and tenant management handled by the provider. The key is choosing the right level of care and tenant profile for your risk appetite and investment goals.

3. “I prefer to search for housing associations in my area on LinkedIn or Google, then look for key people… and connect with them directly.”
Rather than relying on council directories or cold calls, Jackie recommends a more direct, relationship-driven approach. Connecting with HAs via LinkedIn and arranging a chat builds trust and opens doors to long-term leasing opportunities. This method not only works—it also bypasses the gatekeeping that slows many investors down.

June has been a month of subtle yet significant shifts in the UK property market. For landlords and investors, it’s a crucial time to tighten your strategy and prepare for a landscape that’s changing.

Private rents are slowing, but still rising.
According to the latest ONS figures, private rental prices paid by tenants in the UK rose by 7.0% in the 12 months to May 2025, a slight drop from April’s 7.4%. While it marks a slowdown, this rate is still running far ahead of wage growth. In England, rents rose 6.8%, with London leading the surge at 10.1%.

The story here isn’t just inflation, it’s about a plateau forming. Demand is softening in certain regions, particularly where affordability has been stretched to its limits. The days of easy rent hikes are likely behind us, and landlords are now focusing on long-term tenant retention and cost-efficiency.

House price growth is stalling.
House prices rose 3.5% in the year to April, bringing the average to £265,000, but this is well below the 7.0% annual growth reported in March. Halifax’s data adds further weight, reporting a 0.4% fall in prices in May, with the average house now priced at £296,648. This slowdown is especially apparent in southern regions and parts of the Midlands.

So what does that mean for you? Buyers are regaining leverage, and for those holding underperforming or low-yield single-lets, it might be time to reassess your position. We’re seeing investors shift capital into higher-yield HMOs and commercial-to-resi projects where value-add is still achievable.

Rental growth for new tenancies is cooling.
Zoopla’s latest Rental Market Report shows rents for new lets have risen just 2.8% year-on-year, the slowest pace since mid-2021. The average rent is now £1,287 per month, with London (£2,121), Bristol (£1,651), and Manchester (£1,360) leading the pack. But growth has slowed in many regions, suggesting we’re heading into a more balanced market for tenants.

This data hints at a growing importance on portfolio performance over expansion. Investors who were purely playing the appreciation game may now need to lean more into operational efficiency, tenant quality, and location strength.

Licensing expansion is accelerating.
This is perhaps the most underreported, but financially important shift this month.

More than 30 local councils are currently consulting on or rolling out selective and additional licensing schemes, with major zones launching soon in Preston (October) and Westminster (December). Fees range from £800 to over £1,200 per property, and non-compliance can lead to hefty civil penalties or rent repayment orders.

Some councils are using these schemes to pre-empt incoming legislative changes like the Renters Reform Bill. The bottom line? You must factor compliance into your business model now, not after enforcement begins.

In Summary
June’s numbers paint a picture of a market that’s still strong, but becoming more selective, more localised, and more tightly regulated.

Let us know how you’re planning to adjust, whether it’s selling, refinancing, or restructuring your strategy. And if you need support or insight, we’re here to help.

This Week’s 3 Golden Nuggets

1. “They’re looking to hire a VA to reclaim their time, but they’re too busy to start the process.”
Lukasz nails one of the biggest paradoxes in business ownership. Many entrepreneurs know they need help, but they’re stuck in the very time trap they’re trying to escape. He estimates it takes 30–50 hours over 2–3 weeks to successfully recruit a VA yourself. If you don’t have that time to spare, it may be wiser to delegate the process from day one.

2. “Recruitment is a people-centred process. You need to talk, listen, and assess personalities and skills.”
Lukasz explains that doing it alone means posting ads, handling up to 300 applications, and holding multiple rounds of interviews. If you’re not naturally comfortable with interviewing or lack recruitment experience, it can quickly become overwhelming. Agencies help eliminate this friction by doing the heavy lifting for you.

3. “You get a long-term team member who’s recruited for your needs… There’s strong post-recruitment support because the agency only benefits if your VA stays with you.”
Lukasz outlines the benefits of a fully managed agency model, like his own. Unlike one-off recruiters or pay-as-you-go platforms, this approach gives you a dedicated VA without upfront fees, plus long-term support and stability. For time-poor entrepreneurs who need reliable help without the stress of sourcing, this is often the smartest path forward.

To get full access to Lukasz’s article for free, click the button below!

House prices fell for the first time in nine months. The fall of 0.2% was on a monthly basis, and between November and December last year.

That’s according to the latest housing data from the Halifax which showed the cost of the average property sat at £297,166 in December. However, despite the fall, property is still 3.3% higher than the same period last year.

Northern Ireland saw the biggest annual increase in house prices, at 7.4%. Next was the North West with 5.3% and the North East at 4.6%. The lowest annual increase in the average property value – 0.2% – was in Scotland.

Halifax and Nationwide collide over data 

The Halifax results are in sharp contrast to Nationwide’s data. The latter reported that property had, in fact, gone up by 0.7% between November and December. Halifax sample 3,000 more data points than Nationwide and these are larger in northern parts of England, accounting for some of the discrepancy.

Amanda Bryden, head of mortgages at Halifax, attributed the higher figure in November and earlier in the year to increased demand. This, she said, had been triggered by the lowering of mortgage interest rates together with an increase in wages and the lowering of price inflation.

“Providing employment conditions don’t deteriorate markedly…buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year,” she added.

Developers noted increased demand after rates cut

York-based house developers Persimmon confirmed it had seen an increase in buyer demand when mortgage interest rates had first fallen in summer last year. Its total sales for 2024 was around 15,500 properties. This was almost 600 more properties than the previous year.

The Bank of England is expected to reduce its base rate further this year, prompting mortgage lenders to reduce interest rates. Certain lenders, such as HSBC, Halifax and the Leeds Building Society have already reduced mortgage interest rates this month in anticipation of future Bank of England rate cuts.

Other factors expected to affect the market in 2025 is the ceasing of the current Stamp Duty relief options at the end of March.