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!
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