UK Property Market Insights – January 2025

Dear Investors,

As we begin 2025, the UK property market remains resilient, with key regional markets offering strong investment potential, rental demand, and long-term capital growth.

The year has kicked off with a surge in sales activity, primarily driven by buyers looking to complete ahead of the Stamp Duty increase in April. Meanwhile, rental demand continues to outstrip supply, leading to rising yields and rental growth well above inflation.

With interest rate cuts expected, affordability pressures easing, and demand for both sales and rentals holding strong, now is the time to position yourself for long-term gains.

?? UK HOUSE PRICE TRENDS

2025 forecasts predict house prices rising between +2% and +4%, supported by improving affordability and strong demand.

Latest Growth Data (Annual % Change):

Source Annual Growth

Halifax (Dec 2024) +3.3%

Nationwide (Dec 2024) +1.9%

ONS/Land Registry (Nov 2024) +0.7%

Rightmove (Jan 2025) +4.7%

Zoopla (Jan 2025) +3.3%

Regional Performance Highlights:

• Northern Ireland: ?? +7.7% (Strongest growth)
• North West England: ?? +5.3% (Top-performing English region)
• Yorkshire & Humber: ?? +5.7%
• North East: ?? +5.9%
• London: ?? -0.1% (Continues to underperform compared to regional markets)

Investor Takeaway: The strongest capital growth opportunities remain in affordable regional markets, particularly the North West, Yorkshire, and Northern Ireland, where growth rates significantly outperform London.

UK RENTAL MARKET – HIGH DEMAND, LOW SUPPLY

The rental market remains exceptionally strong, with supply shortages continuing to drive up rental prices and yields remaining well above inflation.

Latest Rental Growth Data (Annual % Change):

Source Annual Growth

ONS (Nov 2024) +9.2% (England) ONS (Nov 2024) +8.5% (Wales) ONS (Nov 2024) +6.9% (Scotland)

Goodlord Rental Index +3.0%

HomeLet Rental Index +1.3%

Rightmove (Q4 2024) +4.7%

Zoopla (Q4 2024) +3.9%

?? Regional Rental Trends:

• North East – +9.6%
• Yorkshire & Humber – +6.1%
• North West – +5.9%
• London – +5.9%
• Northern Ireland – +11.5% (highest growth)

?? Investor Tip: Rental demand remains exceptionally strong, with an average of 10+ applicants per rental property. Now is a great time to secure high-yielding buy-to-let properties in high-demand regions.

MORTGAGE RATES & INTEREST RATE OUTLOOK

• The Bank of England is expected to cut rates at least 4 times in 2025, reducing borrowing costs for investors.
• CPI Inflation: Now at 2.5% (down from 2.6%), expected to fall gradually throughout the year, increasing the likelihood of further interest rate reductions.
• More mortgage products becoming available, boosting affordability.

?? What This Means for Investors:

• Lower mortgage rates will improve yields and profitability for buy-to-let investors.
• Increased market confidence and buyer activity will support steady house price growth.

??? FEATURED INVESTMENT: TRANQUILLITY HOUSE, MANCHESTER

?? Tranquillity House – Manchester

? Circa 5% Net Yields

? Prime Manchester Location

? Fully Managed Investment

? Strong Capital Growth Potential

?? Also Available: Dockside Residence, Liverpool

? 8%+ Net Yields on short term lets

? Immediate Rental Income

? Prime City Centre and Waterfront Location

?? Why Invest Now?

Both Liverpool and Manchester remain one of the UK’s best-performing investment markets, with high rental demand and solid capital growth projections. Enquire today before units sell out!

NEXT STEPS: BOOK A STRATEGY CALL

If you're serious about growing your property portfolio, let's discuss tailored investment opportunities for 2025.

?? Email: [email protected]

?? UK Office: 020 8175 9899

?? WhatsApp: +27 65 630 9368

?? Limited Opportunities Available – Let’s Talk Today!

To your success,

Dale Anderson Managing Director, Fabrik Invest

?? www.fabrikpropertygroup.com