Rightmove has cut its 2025 house price growth forecast from 4% to 2%, citing a decade-high supply of homes and flat annual growth of just 0.1%. However, for UK landlords, the bigger picture tells a more promising story: motivated buyers, steady demand, and improved affordability could all help underpin longer-term market stability—particularly for well-priced investment properties.
The property portal’s latest market update reveals that asking prices fell by -1.2% in July, bringing the average home down to £373,709. London led the way with the steepest drop, as new sellers in Inner London slashed their prices by -2.1%.
Buyers still active despite modest price movement
Rather than signalling a slump, Rightmove’s data points to a recalibration—buyers are still out there, but they’re savvy and selective. Colleen Babcock, property expert at Rightmove, explained: “It’s been a promising first half of the year for activity levels, particularly when you consider that some will have brought their plans forward to try to avoid added stamp duty from April.”
She added, “Even after the stamp duty deadline, we’re seeing more sales being agreed and more new potential buyers entering the market than at the same time last year.”
This “buyers’ market” presents clear opportunities for landlords, especially those looking to expand portfolios or pivot into high-yield regions. The abundance of stock gives investors leverage in negotiations, while falling mortgage rates—particularly if further Bank of England rate cuts arrive before 2026—could improve affordability and lending flexibility.
High stock levels putting pressure on pricing
Rightmove’s revision is largely driven by excess stock, not weak demand. With more homes on the market than at any point in the last ten years, vendors are under pressure to price realistically—especially if they want to secure a sale in today’s discerning climate.
Babcock explained: “The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there… What’s most important to remember in this market is that the price is key to selling.”
She continued, “It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.”
For landlords with capital ready to deploy, this kind of price sensitivity could mean picking up good-quality properties below peak valuations—especially in areas like Inner London, where discounts have become more pronounced in recent weeks.
Landlords well placed to benefit
The narrative around house prices can often skew negative when growth slows. But for landlords, especially those with long-term strategies, this environment can be highly advantageous.
Sellers keen to move quickly are trimming asking prices. Buyers remain motivated, especially where properties are priced competitively. And with affordability improving—thanks to lender competition and the likelihood of base rate cuts before the end of the year—there’s real potential for landlords to act decisively in a market full of options.
As Babcock concluded: “Looking ahead to the second half of 2025… we expect market activity to continue to be resilient. Crucially, buyer affordability is heading in the right direction, and another two Bank Rate cuts before 2026 would be a big boost to this.”
In short, while short-term capital growth may be slowing, landlords focused on value, yield, and strategy are well placed to capitalise. This is no time to sit on the sidelines—it’s a moment to engage smartly with a shifting market.