2025 has been a positive year for the UK residential property market. The latest figures from the Office for National Statistics show that the momentum is continuing as we enter the second half of the year – and there is lots to look forward to for anyone looking to buy UK property this year.
Average UK house price growth is strong
Property values are rising at their fastest rate since December 2022. An average increase of 6.4% in the last year is not just the best result in the last 30 months, it’s also up from the 5.4% increase recorded last month.
That means house prices are not just going up fast, the rate of their growth is increasing. That’s great news for anyone who wants to purchase UK investment property for sale.
The growth is caused by a combination of factors, including:
- Interest rate cuts leading to falling mortgage costs
- An overall lack of supply and low construction rates
- Growing populations in the busiest urban markets
- Stamp Duty reductions coming to an end in April
Those factors together meant that there are more buyers and sellers in the market, increased market activity and more competition for homes. You can learn more about these factors by viewing our UK property market insights here.
Where are UK house prices rising fastest?
The national average is one thing, but when we look at the regional data, some areas of the UK are seeing even more significant property value growth.
The regions growing faster than the national average include:
The Office for National Statistics data shows that choosing the right region, you can supercharge your investment portfolio and earn even higher returns.
Are rents in the UK rising in June 2025?
The data also shows that rents are rising in the UK, making the news even more encouraging for investors from around the world.
The average UK rent has increased by 7.4% in the last year, to a total monthly average rent of over £1,300. As with house prices rises, that is based on a lack of supply – in particular the sort of luxury city centre accommodation that is in such high demand with young professionals and international students who are willing to pay the highest prices.
Likewise, rents in certain areas like the North West are growing faster than the national average, making cities like Manchester an obvious option for investors.
When is the best time to invest in UK property?
The best time to buy UK property as an investment is always as soon as possible. If you pick the right location and the right building, your long-term profitability is likely to be good. Even during economic uncertainty, places like Manchester and Birmingham proved to be strong choices which delivered profits.
With house prices growing, you will pay more for your property if you wait longer. That means missing out on profits now and in the future. Similarly, the longer you wait, the more rental income you will miss out on.
That makes 2025 a perfect time to invest in UK property – contact our team today to learn more about the options and how you can maximise your income through property investment.
