Are UK Property Prices Falling in 2025? Market Insights for Strategic Investors

10 Sept

After several years of sharp rises, the UK property market is entering a new phase. Headlines are filled with talk of falling prices—but what does that really mean for you as a strategic investor?

Let’s explore the real data, regional variations, and how to position your capital for advantage in a market shift.

1. Where Are Prices Heading in 2025?

Recent data from Nationwide and Zoopla shows:

National average prices have dipped by 0.8% MoM (June 2025)
Annual price growth still sits around +2% in some regions
South East and London are showing small declines, while Northern cities are proving resilient

But this isn’t a crash. It’s a recalibration.

2. Regional Performance: The Rise of Undervalued Markets

While some overvalued postcodes are correcting, others are rising. For example:

Nottingham, Manchester, and Plymouth remain strong for yields
Liverpool and parts of Scotland are benefitting from infrastructure and rental demand

Strategic investors are targeting high-demand rental markets with undervalued assets—not chasing capital growth alone.

3. Why Falling Prices Can Be a Strategic Opportunity

Price corrections create openings:

Greater affordability for entry or portfolio expansion
Higher rental yields as prices dip but rents remain strong
Discounted off-market deals as some investors exit or downsize

We help clients move into these transitional windows with precision timing.

4. Rental Income is Still Rising

While prices are softening in some areas, rents are climbing:

Rents increased by 5.2% YoY in urban centres
Shortage of housing stock and rising mortgage costs are forcing renters to stay longer

This boosts gross and net yields, especially in cities where demand outpaces supply.

5. Long-Term Fundamentals Remain Strong

Despite media noise, key fundamentals are solid:

Chronic housing undersupply
Rising rental demand due to economic uncertainty
Investor-friendly policies in key councils

High-end investors who understand the cycle are taking advantage of this correction to buy value, not panic.

Conclusion Are prices going down? In some regions—yes. But more importantly, returns are going up for those who know where and how to invest.

Our expert team identifies short-term buying opportunities with 12-month turnaround potential, backed by long-term strategy. Don’t wait for the market to stabilise—use the dip to your advantage.

O Johnston & Co https://www.ojohnstonandco.com