The UK property market has shown remarkable resilience, with house prices rising by 2.9% year-on-year, according to the latest Halifax House Price Index. While monthly growth remained flat at -0.1% between January and February, the average property price now stands at £298,602. Landlords and investors are viewing this as a positive sign of stability, even amid fluctuating mortgage rates and economic uncertainty.

Market stability welcomes spring sales season
Despite mortgage rates being higher than buyers have been accustomed to, experts suggest that the housing market remains on solid ground. Marc von Grundherr, Director at Benham and Reeves, commented: “With the winter months now behind us, it’s onwards and upwards from here as we approach the spring selling season and the busiest time of year for market activity. As more buyers look to make their move in 2025, house prices will remain stable and continue along their upward trajectory.”

This optimism is echoed by Verona Frankish, CEO of Yopa, who highlighted the role of the upcoming stamp duty changes: “Whilst the average home buyer is set to see stamp duty costs increase by £2,500 as of April, this is unlikely to deter them from their quest to climb the property ladder. We expect to see further growth materialise as the year progresses.”

Landlords poised for opportunity despite economic shifts
Nathan Emerson, CEO of Propertymark, pointed out that mortgage lending is also on the rise, a sign of growing confidence in the market. “The latest Bank of England Money and Credit Report found that mortgage lending rose to 1.8% in January 2025 from 1.5% in December. This should help enhance confidence as people purchase their next home,” he said.

Daniel Austin, CEO of ASK Partners, noted that despite house price growth, affordability constraints may temper the pace of increases. “Despite a rise in house prices, we believe that growth is likely to face pressure and remain steady, as higher borrowing costs start to affect buyers,” he explained. However, he also pointed to new housing developments and increased investment in alternative property models such as co-living schemes, which are attracting landlords looking for long-term gains.

Property investors adapt to shifting financial landscape
Interest rates remain a key factor in shaping market confidence. Jonathan Samuels, CEO of Octane Capital, acknowledged the positive impact of early-year rate cuts but warned of potential delays in further reductions. “There’s no doubt that the Bank of England’s decision to cut interest rates so early in the year has helped to boost property market sentiment. However, since the Autumn Budget, we have seen inflation rear its head and start to climb, which could delay further rate cuts over the course of this year,” he stated.

For landlords, this means keeping a close eye on lending conditions while also considering alternative financing solutions. Tanya Elmaz, Director of Sales at Together, highlighted the growing demand for financial flexibility: “There are plenty of opportunities out there, whether that be for aspiring homebuyers or landlords looking to invest. Those keen to move forward with their property plans are best to consider the wide range of financial products available, like Shared Ownership or bridging loans for fast, flexible finance.”