The UK property market remains strong as new data from Halifax reveals that house prices have risen by 2.9% over the past year, defying economic uncertainty and higher borrowing costs. While monthly growth was flat at -0.1% between January and February, industry experts suggest the outlook remains positive, particularly for landlords and investors looking to expand their portfolios.
Confidence in the market holds firm
Nathan Emerson, CEO of Propertymark, views the steady increase in house prices as a positive sign. “An increase in house prices is an encouraging trend that has been reflected in other recent reports,” he said. He also highlighted the recent Bank of England Money and Credit Report, which showed mortgage lending rising to 1.8% in January 2025 from 1.5% in December. “This should help enhance confidence as people purchase their next home.”
Emerson also pointed to the importance of government policy in ensuring market stability: “Propertymark looks forward to working with the UK Government on their new Planning and Infrastructure Bill and with all the devolved administrations regarding their own housing targets, which will all be central in ensuring demand and supply levels are balanced out to make housing more affordable in the long term.”
Director of Benham and Reeves, Marc von Grundherr, echoed this optimism. “Despite mortgage rates remaining higher than today’s buyers have become accustomed to, the property market has remained resilient in the face of uncertainty,” he said. “With the winter months now behind us, it’s onwards and upwards from here as we approach the spring selling season.”
Landlords poised for opportunity
The steady rise in prices, coupled with strong buyer demand, has left many landlords and investors feeling optimistic. Stephanie Daley, Director of Partnerships at mortgage advisory firm Alexander Hall, noted that momentum in the market remains robust. “We’ve seen no sign of market momentum slowing so far in 2025, with house prices remaining stable over the start of the year.”
While she acknowledged that the impending stamp duty deadline has fuelled some urgency in the market, she believes its impact will be minimal. “Many buyers have already factored in a potential cost increase from the off, which suggests that any correction that does come as of 1st April will be minimal,” she explained. “The expectation is that the market will continue to go from strength to strength as we approach the busy summer selling season.”
CEO of Yopa, Verona Frankish, reinforced this sentiment, highlighting how landlords and investors remain undeterred by the upcoming tax changes. “Whilst the average homebuyer is set to see stamp duty costs increase by £2,500 as of April, this is unlikely to deter them from their quest to climb the property ladder. We expect to see further growth materialise as the year progresses.”
Long-term investment prospects remain strong
Looking at the wider economic picture, industry leaders continue to express confidence in property as a stable, long-term investment. Jonathan Samuels, CEO of Octane Capital, noted how recent monetary policy has bolstered confidence in the market. “There’s no doubt that the Bank of England’s decision to cut interest rates so early in the year has helped to boost property market sentiment,” he said. “We’ve seen a number of lenders react positively by reducing the rates on offer to the nation’s homebuyers.”
However, Samuels also warned of potential economic headwinds, stating: “Since the Autumn Budget, we have seen inflation rear its head and start to climb, which could delay further rate cuts over the course of this year. Only time will tell, but as it stands, buyers and sellers should be reassured that now is as good a time as any to enter the market.”
Meanwhile, Daniel Austin, CEO and co-founder of ASK Partners, pointed out that the ongoing supply-demand imbalance continues to drive investment in the housing sector. “Despite a rise in house prices, we believe that growth is likely to face pressure and remain steady, as higher borrowing costs start to affect buyers,” he said. “Investors and developers in the residential sector remain motivated by the supply-demand imbalance, and under the new government, we think there will be more projects that get off the ground.”
