Your monthly insight into the UK property landscape 📈 Key Headlines This Month House prices rise 2.5% annually to £271,000 (November 2025 data) Bank of England holds base rate at 3.75% - but vote was closer than expected Property market shows early recovery signs after challenging autumn period North East leads price growth while London continues to struggle 🏠 House Prices: Steady Growth Returns The UK property market delivered encouraging news in January, with government figures showing house prices increased by 2.5% annually to reach an average of £271,000 by November 2025. This marks a notable improvement from October's 1.9% growth rate, suggesting the market is finding its feet after months of uncertainty. Regional Performance Spotlight Strongest Growth: North East: 6.8% annual increase Scotland: 4.5% annual growth Northern Ireland: 7.1% quarterly rise Challenging Areas: London: -1.2% annual decline (improving from -2.6% in October) Wales: 0.7% modest growth England average: 2.2% steady increase The regional divide remains clear, with northern areas continuing to outperform the capital and southern regions where affordability pressures persist. 🏦 Interest Rates: Holding Pattern with Hidden Optimism February brought mixed signals from the Bank of England. The base rate remained at 3.75% as expected, but the voting split revealed underlying optimism for borrowers. The surprise: Four out of nine committee members voted for a cut to 3.5%, suggesting future reductions remain likely. What This Means for Mortgages Mortgage rates have edged up slightly in early February, with several major lenders including Nationwide, Santander, and Virgin Money raising rates by up to 0.19 percentage points. However, rates remain at their lowest levels since 2022 following the recent price war. Current Best Rates: 2-year fixed: From 3.55% (60% LTV) 5-year fixed: From 3.73% (60% LTV) Average rates still significantly lower than early 2025 📊 Market Sentiment: Green Shoots Emerge Industry professionals are cautiously optimistic about 2026. The Royal Institution of Chartered Surveyors (RICS) reported the least negative readings in several months during January. Key Indicators Improving: Buyer Activity: New buyer enquiries: -15% (improved from -21% in December) Agreed sales: -9% (best reading since June 2025) Future Expectations: 35% of surveyors expect sales increases over the next 12 months 43% anticipate price rises over the coming year Strongest optimism since December 2024 🏠 Rental Market: Cooling But Still Pressured Private rents continue rising but at a slower pace. Average UK monthly rents reached £1,368 in December 2025, representing a 4.0% annual increase - down from 4.4% the previous month. Regional Rental Highlights: Highest Growth Areas: North East: 7.9% annual increase Wales: 5.7% growth Northern Ireland: 5.7% rise Moderating Growth: London: Just 2.1% increase (down from 2.8%) Scotland: 2.8% growth England average: 3.9% rise 💡 What This Means for Property Investors January's data suggests the market may be entering a gradual recovery phase after the challenging autumn period. However, several factors warrant close attention: Opportunities: ✅ Regional markets like the North East showing strong fundamentals ✅ Mortgage rates remain competitive despite recent increases ✅ Market confidence slowly returning among professionals ✅ Buyer choice at highest levels in 18 years Considerations: ⚠️ Economic uncertainty around inflation and interest rate trajectory ⚠️ Regional variations remain significant ⚠️ Affordability pressures particularly in southern markets ⚠️ Political factors may impact future market conditions 🔍 Looking Ahead: February & Beyond The property market appears to be finding its footing after the autumn slowdown. While challenges remain, particularly around affordability and economic uncertainty, the underlying fundamentals suggest a gradual strengthening through 2026. Key factors to watch: Bank of England decisions on interest rates Mortgage lender competition and pricing Regional market performance variations Economic data and inflation trends For property professionals and investors, the message remains clear: cautious optimism with careful attention to local market conditions and funding costs.
Renters Reform is locked in – so what now? November brings the reality of these changes into sharper focus, alongside the usual Budget considerations. If you're a landlord, especially one who's not doing this full-time, it's time to get to grips with what it all means. Is the government making life harder for landlords? Maybe. But the real question is: how do you adapt and thrive in this new landscape? Budget 2025: Key Property Updates from Government Sources 1. High Value Council Tax Surcharge The government is introducing a new High Value Council Tax Surcharge for residential properties worth over £2 million in England, starting April 2028. The charges will be: £2,500 per year for properties worth £2-5 million £7,500 per year for properties worth over £5 million This affects fewer than 1% of properties and will be paid by property owners rather than occupiers 2. Property Income Tax Changes From April 2027, the government will create separate tax rates for property income : Property basic rate: 22% Property higher rate: 42% Property additional rate: 47% This applies to England, Wales and Northern Ireland. The government will engage with devolved governments of Scotland and Wales regarding setting their own property income rates 3. Business Rates Reform The government is introducing permanently lower business rates for retail, hospitality and leisure properties with rateable values below £500,000: Small business RHL multiplier: 38.2p (down from 49.9p) Standard RHL multiplier: 43p (down from 55.5p) This is funded by a higher rate for properties worth £500,000+, set at 50.8p 4. Housing Investment The government is committing to deliver 1.5 million homes in England this Parliament, backed by: £39 billion Social and Affordable Homes Programme over 10 years £16 billion National Housing Bank At least three new towns with 10,000+ homes each The National Housing Bank will be headquartered in Leeds as part of a financial services cluster 5. Inheritance Tax Changes The government will maintain the nil-rate band and residence nil-rate band at current levels for a further year until April 2031. The £1 million allowance for 100% rate of agricultural and business property relief will also be transferable between spouses and civil partners 6. Planning Reforms The government is implementing the most ambitious planning reforms in a generation through the Planning and Infrastructure Bill, which aims to: Speed up major infrastructure delivery by up to 12 months Enable "default yes" to development around train stations Add 170,000 homes through reformed planning rules The OBR estimates these reforms will add £6.8 billion to the economy Renters' Rights Act Phase 1: 1 May 2026 The core reforms will take effect, including: Abolition of Section 21 'No Fault' Evictions Landlords can no longer evict tenants without a specific reason End to the practice that has pushed thousands into homelessness All assured tenancies become periodic (rolling contracts) New Tenancy Structure All new and existing tenancies become Assured Periodic Tenancies Tenants can stay as long as they want (until valid grounds for eviction) Tenants can end tenancy with two months' notice Reformed Possession Grounds Landlords can only evict with valid reasons such as: Selling the property Moving in themselves or close family member Tenant rent arrears or anti-social behaviour Extended grounds for serious persistent rent arrears and anti-social behaviour Rent Controls Rent increases limited to once per year Landlords must give at least 2 months' notice of increases Tenants can challenge excessive above-market rents designed to force them out Ban on Rental Bidding and Advance Payments Illegal to ask for or accept offers above advertised rent Cannot request more than 1 month's rent in advance Anti-Discrimination Measures Illegal to discriminate against tenants with children or on benefits Must base decisions only on financial suitability Pet Rights Tenants have right to request pets Landlords must consider requests and cannot unreasonably refuse Initial 28-day consideration period for landlords Strengthened Enforcement Enhanced local council powers and civil penalties Rent repayment orders extended to superior landlords Maximum penalties doubled for repeat offenders Phase 2: From Late 2026 Private Rented Sector Database Mandatory registration for all PRS landlords from late 2026 Annual fee required (amount to be confirmed) Must provide: Landlord contact details Property details (address, type, bedrooms, occupancy) Safety information (Gas, Electric, Energy Performance Certificates) Private Rented Sector Landlord Ombudsman Mandatory scheme for all landlords (expected 2028) Binding dispute resolution service Powers to compel landlords to: Issue apologies Provide information Take remedial action Pay compensation Phase 3: Dates TBC (Subject to Consultation) Decent Homes Standard Applied to PRS for first time Properties must be safe, well-maintained and free from serious hazards Consultation proposed implementation for either 2035 or 2037 Awaab's Law Extension Clear legal timeframes for landlords to address serious hazards Particularly focuses on damp and mould issues Empowers tenants to challenge dangerous conditions Energy Efficiency Standards Consultation on requiring all PRS properties to meet EPC C or equivalent by 2030 November Newsletter - Budget Disappointment & Renter Reform Thoughts Well, the UK budget arrived, and... it was a bit of a letdown, wasn't it? Not much in there to really grab your attention. It feels like the government's nudging everyone to get their money working harder through investments, rather than letting it sit in a bank. And that's a point we've been making for ages! While everyone's been waiting and watching, those who've already invested with us have been reaping the rewards. On the Renters Reform Bill, we reckon about 90% of it is just good, common sense – stuff we're already doing as standard (and often going above and beyond). As for the other 10%, we're waiting for the full picture to emerge before we make a judgement. The bottom line? If you're in property to make money, it's a business. Treat it that way, and you'll see the difference. This blog post was written by Chris and Anthony Hunter, founders of Chant Properties Ltd. The information provided is based on market data available as of November 2025 and represents our current understanding of the property market. Always seek professional advice before making investment decisions. Please fact-check all information before publishing, particularly the statistics, dates, and specific details about policy changes.
