UK house prices held firm in June 2025, with the latest Halifax House Price Index confirming zero month-on-month growth following a -0.3% dip in May. The average property now stands at £296,665, up 2.5% over the past year. While some commentators call this a subdued market, for landlords and buy-to-let investors, it presents a strategic window of opportunity — one defined by stable pricing, lower borrowing costs, and rising rental demand.
Amanda Bryden, Head of Mortgages at Halifax, said: “The UK housing market remained steady in June, with the average property price effectively unchanged over the month. At £296,665, the average house price is still around +2.5% higher than this time last year.”
Bryden added that flexibility on affordability checks is already having an impact: “Over the last two months, we’ve already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they wouldn’t have qualified for before.”
Regional strength
Landlords looking beyond the south may find greener pastures. Property prices in Northern Ireland have risen an impressive 9.6% year-on-year, while Scotland saw a 4.9% increase and the North West of England climbed 4.4%. These regions not only offer better entry points for investors but also boast more robust demand and yield potential than the overheated southern markets.
In contrast, the South West and parts of southern England are experiencing an overhang in supply. Nicholas Finn, Managing Director at Garrington Property Finders, explained: “The imbalance is greatest in southern England… In some areas the glut of supply is so acute that estate agents are refusing to list homes where they feel the owner is asking for an unrealistic price.”
Finn went on to say, “The net effect has been to turn the south into a buyer’s market — in which buyers can ask for, and with the right seller, get a significant reduction in asking price.” For seasoned landlords, this means potential for discounted acquisitions in once-pricey markets.
One Wirral-based investor shared that he’d just secured a two-bed flat in Manchester “for £12,000 under asking — the seller had three similar properties and wanted out fast.” For landlords with cash or financing in place, today’s hesitancy could be tomorrow’s portfolio win.
Lower mortgage rates
Interest rate expectations are also beginning to swing in landlords’ favour. The Bank of England is widely expected to cut the Base Rate as early as August, with markets pricing in a second reduction by year-end. As Finn put it: “Mortgage interest rates that start with a 3 rather than a 4 could become increasingly common.”
These shifting dynamics are already bringing more buyers back into the game. Halifax reported an increase in mortgage approvals and transactions in May, with Bryden noting, “Wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.”
Government intervention could also add momentum. Nathan Emerson, CEO of Propertymark, said: “The UK Government is expressing a lot of positive noises to boost England’s housing supply… These include creating a National Housing Bank to invest in building 500,000 new homes, and the speed at which the Planning and Infrastructure Bill has progressed through Parliament so far.”
While some experts warn that affordability remains tight — particularly for overstretched buyers — the pressure is creating longer tenancies and stronger demand in the private rental sector. Sarah Coles of Hargreaves Lansdown warned: “It’s vital not to push yourself to the brink and end up being forced to sell at a time when prices may not have risen enough to cover your costs.”
For landlords, this cautious approach by first-time buyers is translating into extended stays in rented homes — a quiet but valuable silver lining.
Steady prices, stable rates
While the headlines may focus on flat house prices and affordability strains, landlords should see something else: stability. With modest growth, fewer bidding wars, and more flexible lending criteria, this could be the most investor-friendly environment since pre-pandemic levels.
Rental demand remains strong, particularly in regions with healthy price growth but lower capital entry points. And with interest rates expected to ease further, landlords with access to financing — or cash reserves — are uniquely positioned to make strategic acquisitions while competitors hesitate.
Halifax’s full report can be read, here: House price growth flat in June at 0.0%.
