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.
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