Property Market Update August 2025: Interest Rate Cuts and Tax Proposals Shake Up the Landscape
Chris Hunter • September 5, 2025

Most landlords are holding their breath.


The property market is shifting beneath our feet.


With interest rates falling and new tax proposals looming, August 2025 brings both opportunities and challenges for property investors across the UK.

Interest Rates Finally Drop


The Bank of England has cut the Bank Rate to 4.00%, down from 4.25%. This marks the first reduction since the hiking cycle began in late 2021.


But here's the interesting part...


The decision wasn't straightforward. The Monetary Policy Committee was deeply divided, requiring a rare two-round vote. The final tally showed 5 members in favour of the cut, with 4 preferring no change. One member had initially pushed for a larger 0.50 percentage point reduction.


This split decision suggests uncertainty about the economic outlook, even among the experts.


What does this mean for property investors?


Lower interest rates typically reduce mortgage costs, potentially improving cash flow for leveraged property investments. For our investors at Chant Properties, this could mean better returns on future acquisitions.


Affordability Improves for First-Time Buyers


There's good news on the affordability front.


House prices are now 5.75 times the average income – the lowest level in over a decade. This improved affordability has helped support a rebound in the market.


For property investors, this creates an interesting dynamic:


  • More first-time buyers are entering the market
  • Potential for capital appreciation as demand increases
  • Opportunity to acquire properties in areas with strong growth potential


Landlord Income Insights


Did you know only 5% of landlords earn a gross income over £50,000?


This statistic highlights an important reality: most landlords aren't the wealthy property tycoons often portrayed in the media. The majority are everyday people supplementing their income through property investment.


At Chant Properties, we've always focused on creating sustainable returns for our investors, regardless of market conditions.


Political Drama Affects the Property Market


On 7 August 2025, Rushanara Ali resigned as Minister for Homelessness following controversy over her own property dealings.


Reports revealed she had evicted four tenants from a property she owned and, after failing to sell it, re-let it for approximately £700 more per month – increasing the rent from around £3,300 to £4,000.


The irony wasn't lost on landlords across the country.


This situation highlights the complex relationship between politics and property, and the challenges of balancing tenant protection with landlord rights.


Concerning Tax Proposals for Landlords


The most worrying development for property investors comes in the form of potential tax changes:


National Insurance on Rental Income


Officials are considering applying National Insurance contributions to rental income – essentially a new tax on landlords. This move aims to plug a £40 billion fiscal gap and could raise approximately £2 billion.


Capital Gains Tax on High-Value Home Sales


There's also discussion about potentially taxing home sales over £500,000, possibly replacing stamp duty and council tax with national or local property taxes.


These proposals have understandably stirred up anger among UK landlords. Many are already dealing with increased regulation and costs.


Companies House Identity Verification


From 18 November 2025, Companies House will implement mandatory identity verification:

  • New directors will need to verify their identity to incorporate a company or join an existing one
  • Existing directors must confirm identity verification when filing their next annual confirmation statement
  • Existing PSCs (People with Significant Control) will need to verify their identity within 12 months of the 18 November commencement date


This change aims to increase transparency and reduce fraud in the UK business environment.


Our Take on the Current Situation


The property market feels like it's in a holding pattern.


Everyone seems to be waiting for the Renters Rights Reform to come into effect before making major decisions. The budget proposals for early November have created additional uncertainty.


At Chant Properties, we're monitoring these developments closely. Our approach remains focused on:

  • Identifying value-add opportunities in the North East
  • Maintaining strong returns for our investors
  • Adapting our strategy to navigate regulatory changes


Despite the challenges, we continue to see strong potential in the Northern property market, particularly in Newcastle and surrounding areas.


What This Means for Investors


If you're currently investing in property or considering it, here's what you should keep in mind:

  • The interest rate cut provides some relief for mortgage holders
  • Potential tax changes could impact returns – diversification remains important
  • Improved affordability may create opportunities in certain market segments
  • Regulatory changes require staying informed and adaptable


Looking Forward


The coming months will be crucial for property investors. The November budget will likely provide clarity on the proposed tax changes, while the implementation of the Renters Rights Reform will reshape the landlord-tenant relationship.


At Chant Properties, we're here to help you navigate these changes. Our experience and straight-talking approach mean you'll always get honest advice about the market and investment opportunities.


Want to discuss how these changes might affect your property investment strategy? Get in touch for a friendly chat.



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 August 2025 and represents our current understanding of the property market. Always seek professional advice before making investment decisions.


Sources:

Bank of England

The Guardian

Savills

GOV.UK


Please fact-check all information before publishing, particularly the statistics, dates, and specific details about policy changes.


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UK Property Market Update: June 2026 — What the Data Really Shows

By Chris Hunter • July 3, 2026
The headline from Rightmove landed mid-June and it looked bad. Average UK asking prices dropped 0.6% - the biggest June fall in fourteen years.  If you read that and thought "the property market's going backwards," I'd completely understand it. Most people did. But that number - £376,191 as the new average UK asking price - is doing a lot of heavy lifting for a very divided market. And what it's hiding is arguably more interesting than what it's showing. Here's what actually happened in June 2026, source by source. What Rightmove's June Data Actually Tells You The 0.6% monthly fall (down £2,113 from May) took the average UK asking price to £376,191. Year-on-year, prices are down 0.5%. Stock on the market is at a historically high level for this time of year. Buyer demand is down 10% year-on-year. Over a third of new listings are failing to sell. That sounds rough. And in some parts of the country, it is. But those figures are a national average, and a national average in 2026 is almost meaningless. The South is pulling the number down. Southern England and Wales saw price falls across every region. London dropped 1.2% year-on-year. The South East was down 1.6%. Meanwhile, the North East was up 3.2% year-on-year, with an average asking price of £200,887. Month-on-month movement: zero. Flat. Stable. Scotland was up 0.8% month-on-month and 3.3% year-on-year. Rightmove's own analysis notes that none of the ten fastest-growing cities over the last decade are in southern England - and Manchester's asking prices have risen 63% since 2016, compared with London's 7%. Zoopla and the ONS: What Sold Prices Say Rightmove tracks asking prices - what sellers want. Zoopla and the ONS track agreed sales and sold prices - what buyers actually pay. The gap between those two things matters. Zoopla's June 2026 House Price Index puts UK house price growth at 1.4% year-on-year, supported by easing mortgage rates and resilient demand in several regions. Not spectacular. But growth, not decline. The ONS official UK House Price Index - based on completed Land Registry transactions - shows average UK house prices increased 3.8% in the 12 months to April 2026, to £270,000. England averaged £291,000 (up 3.9%), Wales £212,000 (up 3.5%), Scotland £192,000 (up 2.8%). That 3.8% figure looks very different from Rightmove's falling asking prices. The explanation is partly timing - the ONS data lags by a couple of months - and partly the "base effect" from Stamp Duty Land Tax changes in April 2025, which distorted the year-on-year comparisons. The ONS flags this explicitly. For the North East specifically: the ONS data for Newcastle upon Tyne shows an average house price of £209,000 in April 2026 - up 5.0% from April 2025. The wider North East region saw average prices of £163,000, up 9.9% year-on-year in that same period. The Rental Market The ONS Price Index of Private Rents shows average UK monthly private rents increased 3.3% to £1,383 in the 12 months to May 2026. England averaged £1,442 (up 3.4%). Within England, the North East recorded the highest annual rent inflation of any English region at 5.9%. London, which averages £2,294 per month, saw the lowest growth at 2.0%. Newcastle upon Tyne sits well above the regional average. ONS local data shows average monthly rents in the city reached £1,204 in May 2026 - up 10.3% from £1,092 the previous year. The North East regional average stands at £776, up from £733 a year earlier. Zoopla's June 2026 Rental Market Report adds wider context: there are 25% fewer homes available to rent than pre-pandemic levels nationally. Rental inflation of 2.1% at the national headline level understates conditions on the ground - three-quarters of rental areas are growing faster than that average. Mortgages and the Base Rate The Bank of England held the base rate at 3.75% on 18th June 2026 - the fourth consecutive hold. The Monetary Policy Committee voted 7–2 in favour of holding, with inflation at 2.8% in May still above the 2% target. The next MPC meeting is 30th July. Fixed mortgage rates have moved independently of the base rate decision. Rightmove's daily tracker recorded the average two-year fixed rate at 5.07%, down from 5.18% the previous month - a saving of around £30 a month on a typical mortgage. Several lenders also cut buy-to-let rates by up to 20 basis points during June. As of 2nd July, financial markets expected the base rate to hold at 3.75% for the remainder of 2026. A Note From Us We've been buying property in Newcastle and across the North East since 2009, with a portfolio now worth over £2.5 million. We publish this monthly update because we think the data is worth reading properly - regional context tends to get lost in national headlines, and June 2026 is a good example of why that matters. Sources: Rightmove House Price Index June 2026 | Zoopla House Price Index June 2026 | ONS Private Rent and House Prices UK: June 2026 | ONS Housing Prices in Newcastle upon Tyne | Bank of England Base Rate - held 18 June 2026 | HM Land Registry UK HPI April 2026

UK Property Market Review – May 2026

By Chris Hunter • June 5, 2026
The UK Property Market in May 2026: What the Numbers Are Really Telling Us
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