Is Property a Good Investment in the UK 2025?

There have been many changes to the property market in recent years. In this blog, we’re answering the question, is property a good investment in the UK in 2025?

The 2024 property market

The 2024 property market has been reasonably positive. House prices have increased, allowing for higher returns for buy-to-let investors.  

These house price increases were expected after the significant drop in house prices following the pandemic and the cost of living crisis.

2024 has seen very high rental property demand as many people struggle to enter the property ladder. The increased rental demand works in favour of landlords, as they often find their properties are only on the market for a short time.

What are the UK property market predictions for 2025?

Property values continue to rise

It is expected that house prices will continue to rise in 2025. This is predicted to become more prevalent later in the year. House prices are also set to continue increasing into 2026. However, there may be other circumstances that affect these house prices before then.

Currently, the average house costs around £290,000. In mid-2025, house prices could reach around £300,000. Of course, each area will have varying average prices, as they depend on many factors. Interest rates also impact mortgage rates, so you need to keep an eye on these.

Rental demand will remain high

We’ve already mentioned the increased demand for rental properties, which is not set to slow down any time soon. This is great news for landlords investing in buy-to-let properties. If you see a property that you’d like to invest in, then it’s likely that you’ll need to act quickly, as other investors will also likely be interested in it.

The good news is that cities such as Manchester and Birmingham are increasing their buy-to-let appeal. Manchester is a fantastic place to invest in the UK.

Manchester has many universities, which increases the number of students in the area. Many students are now choosing to remain in Manchester after finishing their studies, helping to boost the rental and housing market. This is partially due to the fantastic career opportunities, co-working spaces and high-quality properties.

Buying trends for property investments

With average house prices expected to rise throughout 2025, you may find it useful to purchase properties sooner rather than later.

Using the property as a buy-to-let opens the door to a great rental income and increases capital growth. Contact us for Manchester property investment.

Is 2025 a good time to purchase an investment property?

Yes, now is a great time to purchase an investment property to increase your income. The rental demand is so high, meaning that you can increase rental prices slightly. It’s important to look into similar properties to yours and establish what a good average rental price would be. If your property is overpriced, then it’s unlikely that you’ll experience the benefits of high demand.

Where is the best place to invest?

Central London is becoming less appealing to property investors and even tenants too. People working in London often choose to live outside the city and commute in when necessary. This can help to keep their costs down, but it heavily impacts the rental market. If you’re not interested in buying a property in London, then we have a solution.

Manchester is an excellent place to invest, and its recent developments have helped attract tenants. There are many property investment opportunities for those wanting to purchase a buy-to-let property.

We provide fantastic property management services in Manchester and we have over 30 years of industry experience. We support landlords with all aspects of their journey and can provide advice on the best UK property investment strategies.

We hope this blog has been useful to you when thinking about property investment in 2025. Are you looking for high-quality property management services? Contact us today to see how we can help you with a successful property investment.

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