It’s been a turbulent year for global markets. Stock prices have fluctuated wildly, and political uncertainty – especially around trade tariffs – has dominated headlines. But one sector has quietly continued to perform well: investing in property.
Amid the economic noise, the UK property market has demonstrated remarkable resilience. As we approach the mid-point of 2025, let’s take stock of the year so far and look ahead to why investing in property remains one of the most reliable choices for long-term growth.
Stability in an Unpredictable Year
Two major themes have shaped the financial landscape this year: Trump’s tariffs and stock market volatility. The stock market has seen notable dips, with the Dow Jones down 5% and the FTSE 100 slipping by 1.9%*.
In contrast, property investment has stayed the course. According to Savills, UK house prices are set to rise by 4% this year and by 23.4% over the next five years (up to 2029). These forecasts follow a stronger-than-expected 2024, when property values increased by 4.7% (Nationwide).
A key factor behind this growth is the ongoing mismatch between housing supply and demand. Despite government pledges to accelerate housebuilding, there’s been little visible impact in terms of completed homes. That continued demand makes investing in property a safer bet for those seeking steady capital appreciation.
The UK: A Safe Haven for Property Investors
A recent Knight Frank report described the UK property market as a ‘safe haven’ for investors. Economic instability elsewhere – from shifting global trade policies to rising geopolitical tensions – has led many international investors to seek more secure, less volatile options.
As a result, UK bricks and mortar are proving attractive. In times of uncertainty, the dependability of the housing market becomes even more appealing – particularly for those focused on long-term property investment rather than high-risk speculation.
Interest Rates and Mortgage Conditions
In support of the housing market, the Bank of England has already cut the base rate twice in 2025 – first in February, then again earlier this month. Further reductions are expected, with forecasts suggesting a rate as low as 3.75% by the end of the year.
Lower interest rates typically boost housing activity, encouraging both buyers and investors to act. In April, the mortgage sector reached an eight-year high for product availability, while increased lender competition pushed many mortgage deals below 4%.
Additionally, the Financial Conduct Authority has encouraged lenders to reassess affordability criteria, leading to more relaxed borrowing conditions. This could significantly benefit first-time buyers and second-steppers looking to move, further stimulating market demand.
Demand Driving Rental Growth
For those interested in investing in property as a buy-to-let venture, the outlook remains positive. Demand for rental homes continues to outstrip supply, with Zoopla reporting an average of 12 applicants for every rental listing.
Rental prices are expected to increase by 3–4% this year, offering landlords the potential for healthy returns through both capital growth and rental income. As affordability remains stretched for many would-be buyers, the private rented sector continues to see robust demand.
Why Property Remains a Solid Investment
While some investors may be drawn to falling stock prices and talk of bear markets, such strategies require a tolerance for high risk and short-term thinking. If your goal is reliable, long-term returns, investing in property still holds strong appeal.
The key, of course, is to buy wisely – in areas with ongoing demand, sound infrastructure, and the potential for long-term growth.
If you’re considering expanding your portfolio, purchasing your first buy-to-let, or simply moving home, we’re here to help. As experienced local estate agents, we can provide you with an accurate market valuation and practical advice tailored to your goals.
Get in touch to discuss opportunities in the current market – and if you found this article helpful, feel free to share it with someone who may benefit.
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