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Centrick’s UK Property Market Forecast 2025

Download the full guide to our predictions for the UK Sales, Lettings and New Homes markets in 2025. Explore how to make the most informed decision on your next transaction.

The UK property market is poised for a year of growth and change in 2025. Whether you’re an experienced investor or just beginning your journey, staying informed is critical to success. In this detailed forecast, we explore key trends, market predictions, and the opportunities that await in the residential and rental markets. Drawing on leading industry insights from experts like Savills and JLL, alongside Centrick’s proprietary market research, we provide you with the knowledge to make confident investment decisions.  
UK Property Market Forecast 2025

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UK Property Market Forecast 2025

UK Property Sales in 2025: A Year of Steady Growth  

Despite past economic challenges, the UK property market is set to rebound in 2025 with sales prices predicted to rise by 3–3.5%. This growth is attributed to stabilising interest rates and the resurgence of buyer activity.  But what’s driving these market conditions?

Favourable Mortgage Conditions – After several years of high rates, 2025 marks a turning point as the Bank of England base rate levels out, making mortgages more affordable. 

Long-Term Gains for Investors – Leading forecasts suggest property prices could increase by up to 21.6% between 2024 and 2028. For example, a property worth £278,000 at the start of 2024 could rise to over £338,000 by 2028—a £60,000 capital gain.  

Renewed Confidence in the Market – With inflation under control and consumer confidence on the rise, demand is expected to grow across all sectors of the market.  This is particularly true for first-time buyers, with the introduction of the zero deposit mortgage being particularly beneficial.

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Investment Hotspots to Watch in 2025

UK Property Market Forecast 2025
Birmingham

- House prices are set to increase by 26.4% by 2029. - Regeneration projects, including HS2 and "Our Future City" - A young, vibrant population makes Birmingham a magnet for both renters and buyers.

UK Property Market Forecast 2025
Cambridge

- Strong rental yields of 4.1% and rising demand. - Significant population growth and thriving economic sectors bolster the housing market.

UK Property Market Forecast 2025
Manchester

- Major regeneration projects like the Victoria Quarter and NOMA are redefining the cityscape. - Rental growth is expected to hit 21.7% by 2028, making Manchester a stronghold for buy-to-let investors.

2024 Market Predictions

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UK Property Market Forecast 2025

UK Rental Market: Rising Demand and Opportunities

The rental sector remains highly competitive, with rental prices forecast to increase by 3.5% annually through 2028.  Here are some key rental market drivers…

Persistent Undersupply

The UK continues to face a housing shortage, with new housing completions falling short of the government’s target of 300,000 per year. This drives rental competition, especially in urban areas.  

Increased Tenancy Lengths

The average tenancy duration has risen by 218 days over the last four years, reflecting tenants’ desire for stability in a challenging market.  

Energy Efficiency and Regulations:  

A growing preference for energy-efficient homes is shaping tenant priorities. Landlords who invest in properties with EPC ratings of C or higher are well-positioned to meet rising demand while complying with incoming regulations.  

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Explore The Property Market Forecast Blog Series

Trends, Insights, and Opportunities for 2025

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Why 2025 is a Critical Year for UK Rental Market Growth

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Emerging Investment Hotspots in the UK Property Market for 2025

Coming Soon

Energy Efficiency and the Future of UK Property Investment

Coming Soon

Navigating the UK Property Market in 2025

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Why 2025 is the Perfect Year to Invest in New-Build Properties in the UK

Coming Soon

UK Property Market Forecast 2025

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Stay ahead of the curve in 2025 – download the UK Property Market Forecast 2025 to make the most informed decisions for your investment strategy this coming year!

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The UK remains one of the most stable and rewarding property markets globally. Rising house prices, robust rental yields, and strong capital growth make it a prime destination for overseas investors. Favourable exchange rates also enhance the affordability of UK property for those using currencies such as USD or HKD.

Understanding the UK’s tax framework is essential. While you’ll be subject to Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT) upon selling, strategic planning and advice can optimise your tax liabilities. Centrick’s experts can guide you through this process.

From sourcing high-performing properties to offering professional property management, Centrick’s comprehensive services ensure that international investors can achieve their goals while navigating the complexities of the UK market

Cities like Birmingham, Manchester, and Cambridge are top choices for international investors due to their strong rental yields, ongoing regeneration projects, and rising property values. Each city offers unique opportunities for buy-to-let investments and long-term capital growth.

Overseas investors can access various financing options, including UK-based buy-to-let mortgages, bridging loans, and international lending facilities. Specialist mortgage brokers can assist in securing competitive rates tailored to your needs.

Navigating UK property regulations requires understanding rental rules, energy efficiency standards, and tax obligations. Partnering with experienced property consultants, like Centrick, ensures compliance and simplifies the investment process.

Yes, international investors can manage properties remotely by partnering with property management services. Centrick offers comprehensive solutions, including tenant management, maintenance, and legal compliance, ensuring hassle-free ownership.

International investors should research market trends, consult property experts, and review tax implications. Establishing a UK bank account and appointing a solicitor familiar with cross-border transactions can streamline the process.

Energy-efficient properties attract higher rental demand, comply with upcoming UK regulations, and reduce operational costs. For international investors, this translates to long-term tenant retention and enhanced property value.