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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.