The UK housing market has demonstrated impressive resilience, with annual house price growth holding steady at 3.9% in March 2025, according to the latest Nationwide House Price Index. As the government’s revised Stamp Duty Land Tax (SDLT) thresholds took effect at the end of March, property investors and landlords are benefiting from the underlying stability and sustained demand in the market.
The average UK house price now stands at £271,316, with certain regions — particularly Northern Ireland — showing remarkable growth rates. The North-South divide remains evident, but the continued demand for properties across the country highlights the ongoing potential for savvy landlords.
Landlords find opportunities in regional price growth
Nationwide’s data shows that Northern Ireland remains the top performer, with annual price growth accelerating to an impressive 13.5% — the highest rate recorded since 2021. According to the report, this growth is driven by a combination of strong demand and relatively affordable property prices compared to other parts of the UK.
Robert Gardner, Nationwide’s Chief Economist, noted: “UK house price growth remained stable in March at 3.9%, the same as in February. There was no change in prices month-on-month, after taking account of seasonal effects.”
Gardner explained that while the Stamp Duty relief changes had prompted a short-term spike in transactions, the fundamentals of the housing market remain strong. “Activity is likely to pick up steadily as the summer progresses, despite wider economic uncertainties in the global economy. The unemployment rate is low, earnings are rising at a healthy pace in real terms, household balance sheets are strong, and borrowing costs are likely to moderate a little.”
For landlords, this continued price stability presents an attractive opportunity to expand their portfolios, particularly in regions showing consistent growth such as the North West (5.9%), West Midlands (5.8%), and Yorkshire & The Humber (5.2%).
Mortgage market improvements benefit landlords and investors
Another encouraging sign for landlords is the increasing availability of competitive mortgage deals. Nathan Emerson, CEO of Propertymark, highlighted the growing optimism within the sector:
“The housing market has witnessed an extremely encouraging start to the year with sustained house price growth year on year,” Emerson commented. “Although we now sit at the very start of the amended Stamp Duty thresholds for people across England and Northern Ireland, we remain optimistic to see strong market momentum across the entire UK, as we head towards the traditionally busy summer months.”
Emerson added that the prospect of sub-4% mortgage deals offered by some lenders is particularly encouraging. “As we hopefully witness potentially further base rate cuts across the year, it would be encouraging to see this translate into yet more competitive mortgage products being widely offered.”
In the context of investment planning, landlords should consider whether to refinance existing properties or explore new acquisitions while attractive mortgage products remain available. With interest rates showing signs of moderation, strategic borrowing could enhance long-term profitability.
London lags behind, but landlords find value in northern regions
While the UK housing market continues to perform well overall, London remains the weakest performing region with just a 1.9% year-on-year rise. According to Jonathan Hopper, CEO of Garrington Property Finders, this slower growth is largely due to “a flood of supply” in more expensive areas, providing buyers with greater negotiating power.
“Prices will never equalise between the two but a subtle rebalancing is underway. Across much of the south we’re seeing a buyers’ market in which buyers can ask for, and achieve, discounts off the asking price and where sellers are having to price very competitively to get a look-in,” Hopper said.
In contrast, property markets in the North West, West Midlands, and Northern Ireland continue to experience robust growth. These regions offer landlords attractive rental yields and affordable entry points compared to the more expensive southern regions.
Jean Jameson, Chief Sales Officer for Foxtons, also weighed in: “The property market posted a strong performance in Q1 as the momentum seen throughout 2024 continued into 2025. It’s the recent reductions to interest rates and the resulting improvements to mortgage affordability that have been a far greater motivator for homebuyers entering the market in 2025.”
Landlords poised to benefit from continued demand
As the UK housing market continues to demonstrate resilience, landlords are uniquely positioned to capitalise on the evolving landscape. With strong rental demand, especially in regions outside of London, opportunities remain for those prepared to diversify their portfolios.
Despite the ongoing challenges of new legislation and the ending of certain tax reliefs, landlords with strategic foresight are finding ways to thrive. The consistent demand for rental properties, driven by demographic trends and affordability challenges for first-time buyers, remains a fundamental support for the market.
The question for landlords is not whether the market will remain profitable, but where the greatest opportunities lie. With regional markets showing impressive growth and mortgage rates offering renewed affordability, those willing to explore new areas could see significant rewards.
For landlords willing to act now, the prospects remain bright — particularly in those regions where growth continues to outpace the national average.
