Q2 2025 REVIEW
The second quarter of the year has been marked by international tensions and threats to global economic stability. While these disruptions persist, the landscape for investors will remain challenging. However, the fundamental market forces in the UK residential sector continue to provide a good, stable foundation.
The number of homes for sale has risen lately but, overall, demand continues to outweigh supply in both the sales and rental markets. This should help to drive average values higher over time, as should the fact that average incomes are rising faster than inflation.
When house price growth is relatively modest but rents grow more quickly, average yields tend to be stronger. That has certainly been the case in recent months. In all areas, investors are generally seeing yields beating inflation by a wide margin and therefore delivering very worthwhile returns. There are good reasons to expect this trend to persist.
· Market sentiment appears to be cautiously positive.
· Average earnings are continuing to rise faster than inflation.
· Interest rates are expected to fall next quarter.
· The UK’s more affordable markets are still showing the fastest price growth.
· Rental values are still outpacing inflation in most areas.
· Average yields remain good in all regions.
* * *
If you have any questions about any aspect of property investment, please call us today.