MAY 2025 | PROPERTY MARKET REVIEW
A lull in house-buyer demand was always likely to occur after the March rush to complete transactions before a higher rate of Stamp Duty came into force. There was some evidence of this over Easter but, as has so often been the case in recent years, the market has proven very resilient. To illustrate the point, the latest house price index from Zoopla notes that the number of sales agreed in May 2025 reached its highest level in four years.
In addition, most of the forces that drive growth in asking prices and rents are still going strong. Demand outweighs supply, earnings are outstripping inflation, and there is a widespread expectation of lower interest rates in the months ahead. What’s more, the latest forecast from the International Monetary Fund indicates that UK economic growth in 2025 will be faster than previously expected. It reported that business investment is rising and that a recovery is now “under way.”
There are still economic risks, of course – not least the uncertainty stemming from the United States and its erratic international trade policies. However, overall conditions for residential property investors are looking encouraging, and UK market sentiment is reportedly improving.
Darren Bennett
Managing Director
—————————
If you have any questions about any aspect of property investment, please call us today