MARKET UPDATE
UK property market update for march 2025
April 9, 2025 • Author: Richard Bradstock
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We don’t like to talk about politics because it’s alienating for so many, but we cannot deliver this month’s market report without reference to effects that the wider political landscape both globally and in the UK might effect the UK property market. With stock markets globally being rocked by some extraordinary fiscal policy in the States – something that is presenting a fundamental challenge to investor ‘trust’ at all levels towards the United States, the calmness of the UK and in particular the UK property market appears to be particularly attractive right now. If, for the time being, you’ve pulled money out of the stock market then this article is for you.
Why UK property is the safest investment on the planet right now
UK real estate remains one of the safest investment choices available today. Strong legal protections, consistent demand and resilient market fundamentals make it an attractive option for both domestic and overseas property investors. Let’s unpick this further…
Strong Legal Framework & Property Rights
The US and the UK have long been regarded as safe havens where the rule of law is strong (and whilst not perfect) provides investors with a framework they can believe in and crucially invest into. Clearly there is a lot of water to go under this particular US administrations bridge but already trust has been damaged.
When you see the world’s richest man attempting to buy judiciary seats on America’s highest courts thereby undermining the democratic process suddenly the UK with its rock solid but bureaucratic systems look like a particularly safe haven to park your money. The UK’s well-established property laws that protect ownership rights and provide transparency in transactions means investors can buy and sell with confidence knowing their assets are safeguarded against legal disputes and government expropriation.
Consistent Demand and Housing Shortage
England has a chronic undersupply of housing, particularly in major cities like London, Manchester, and Birmingham. Population growth, urbanization, and limited land availability ensure that demand for property remains high. This imbalance between supply and demand continues to drive long-term capital appreciation and rental income potential, making property ownership a highly attractive investment.
The UK government uses taxation policies to influence the housing market. Stamp Duty Land Tax (SDLT), for example, affects property transactions, and adjustments to it can stimulate or cool down the market. Policies like Help to Buy and Shared Ownership schemes have been introduced to assist first-time buyers, but critics argue that such measures can also drive up demand without addressing the core issue of supply.
One of the biggest challenges in the UK housing market is the shortage of affordable homes. Successive governments have pledged to build more housing, but various political and bureaucratic barriers often delay progress. The planning system, which is controlled by local authorities, is highly restrictive and can slow down the approval of new housing developments. Presently England has its lowest rate of delivery since World War Two showing how chronic the supply situation is in the UK.
Political Stability and Investment Security
Compared to many other regions, the UK has a stable political system that provides a secure environment for property investment. Even with occasional political shifts, the fundamental principles that support the housing market—such as property rights and a strong judicial system—remain intact. The UK’s reputation as a secure financial hub further bolsters investor confidence, underpinned by the ever-cautious Bank of England.
The Bank of England, while independent of the government, plays a crucial role in determining the cost of borrowing through its control of interest rates. However, government fiscal policy influences inflation, which in turn affects interest rate decisions. When interest rates reduce, mortgage borrowing becomes more affordable, driving up house prices and is precisely the curve that we are currently on with rates lowering and demand increasing – thereby pushing up prices over the medium term.
Resilience in Economic Downturns
While real estate markets worldwide fluctuate, English property has historically shown resilience during economic downturns. Even during the 2008 financial crisis and the uncertainty surrounding Brexit, the market rebounded strongly. Property in prime locations continues to appreciate over time, making it a stable long-term investment even during periods of economic volatility.
Investing in bricks and mortar is a tangible asset, and one that can shore up savings and appreciate steadily whilst money invested in stocks continues to zig zag along an unpredictable course as we’re currently seeing in the US.
Attractive Rental Market and Yields
With high demand for rental properties, landlords in England benefit from strong yields, particularly in cities with growing populations and employment opportunities. Rental demand has surged due to high property prices making homeownership less accessible for many, ensuring a steady stream of tenants and reliable income for investors.
Safe Haven for Global Investors
England’s property market is a magnet for international investors seeking a safe place to park their wealth. London, especially, is seen as a global financial centre with a well-regulated market, high liquidity, and favourable conditions for foreign ownership. The weakening of the pound in recent years has also made UK property more attractive to overseas buyers, further boosting demand.
Government Incentives and Infrastructure Development
The UK government continues to introduce policies that support the housing market, such as tax incentives for investors, Help to Buy schemes, and infrastructure improvements. Large-scale projects like Crossrail and HS2 enhance connectivity and increase property values in key regions, making now an opportune time to invest.
The RPA View
We believe that the time is now to invest. English property stands out as one of the safest investment options globally due to its strong legal framework, persistent demand, political stability, and resilience against economic downturns. With high rental yields, a thriving rental market, and continued government support, real estate in England remains a secure and profitable choice for investors looking for long-term wealth preservation and growth.
We’re here to help our clients navigate the UK property market to choose the right investment at the right time for them. Contact us today for a chat on how we could help you achieve an attractive ROI over the next 10 years. With high-returning properties starting from under £200k, with the aid of leverage, you might be surprised how little you need to invest to achieve a big return.
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About the author
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
Founder & Managing Director
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