Recent insights from a national network of property professionals highlight emerging trends poised to shape the property market in 2025. From the forces driving heightened Q1 activity to opportunities within the rental market, this year promises notable shifts for investors, developers and landlords. Here’s everything you need to know.
Q1 activity drivers
According to the insights from Jackson-Stops estate agents working across the UK, the first quarter of 2025 is expected to be particularly active as buyers rush to secure properties before the end of the current Stamp Duty incentives. This early-year momentum also reflects pent-up demand from 2024, where political uncertainty and economic challenges slowed market activity. Now, with greater stability, an uptick in transactions driven by necessity and renewed confidence is predicted.
Despite this anticipated activity, transaction delays continue to present hurdles to timely completions, the agents report. On average, deals now take over three months to progress from agreement to exchange, impacted by slower mortgage approvals, complex conveyancing processes and regional variations in search times.
Nick Leeming, Chairman of Jackson-Stops, commented: “The UK property market appears poised for a period of stability and soft growth. This newfound equilibrium will be beneficial for both buyers and sellers, fostering an environment where transactions can proceed with greater confidence and predictability.”
Opportunities in the lettings market
According to the network of agents, the lettings market is undergoing a significant transformation, presenting opportunities for savvy landlords and investors. Rents are forecast to rise between two and three per cent over the next 12 months, driven by strong tenant demand.
However, regulatory changes such as the Renters’ Rights Bill and updates to EPC requirements are expected to reshape the landscape. These shifts may push smaller or accidental landlords out of the sector, creating opportunities for professional landlords to acquire properties at favourable prices.
Will Jordan, Director of Lettings at Jackson-Stops Alderley Edge, commented: “2025 presents several opportunities for the lettings market in Alderley Edge and the sector more broadly. The introduction of the Renters’ Rights Bill, which aims to enhance tenant protections, coupled with proposed changes to Energy Performance Certificate (EPC) requirements will be important legislative changes for landlords and investors to navigate. While some uncertainty still remains on what these changes will mean in practice, there are opportunities for new and seasoned investors. The potential exit of smaller, accidental landlords from the market could create opportunities for professional landlords to acquire properties at favourable prices. These investors, equipped to navigate the new regulations, can benefit from long-term, stable rental income.”
The survey also revealed that while affordability constraints may temper rental increases, the lettings market remains robust, with landlords continuing to benefit from strong tenant demand and long tenancy terms. Enhanced tenant protections and compliance with new EPC standards are key areas for investors to focus on as they adapt to the evolving market.
Shifting buyer preferences
Buyers in 2025 are prioritising lifestyle features, with properties offering good transport links, dedicated work-from-home spaces and access to outstanding school catchment areas in high demand. These preferences are reshaping buyer behaviour, especially among families and professionals balancing career and quality of life.
Alastair Hancock, Director of Jackson-Stops Kent and East Sussex, observed: “Properties within desirable school catchment areas, such as co-educational state-funded grammar schools like Cranbrook School, are highly sought after.”
Similarly, Marcus Browne, Director of Jackson-Stops Taunton, noted a growing preference for move-in-ready properties: “Rising costs of materials and labour have made major renovation projects less attractive. Instead, buyers are seeking properties that require only cosmetic updates, such as painting or new carpets.”
Regions like Cheltenham, Somerset and Kent are expected to perform well, attracting buyers seeking properties that balance investment potential with lifestyle benefits. Buyers are drawn to these areas for their quality schools, excellent transport links and overall appeal.
Chris Jarrett, Director of Jackson-Stops Cheltenham, explained: “House prices in Cheltenham are anticipated to see modest yet steady growth, driven by consistent demand.”
Meanwhile, London’s sales and lettings markets exhibit resilience. Harry Buchanan, Director of Jackson-Stops Pimlico & Westminster, observed: “Demand remains high with rents staying strong and long tenancy terms providing landlords with steady income. Those with HMO licenses for their three-bedroom properties are seeing particularly significant benefits.”
Looking ahead
With the introduction of energy-efficient features in new builds and an emphasis on modern, functional designs, 2025 is expected to see steady activity across all property sectors. As Nick Leeming concludes: “Overall, the outlook for 2025 is quietly optimistic, with demand moving in the right direction following a cautious 2024.”
For investors, developers, and landlords, understanding these trends will be key to navigating an evolving market and seizing opportunities as they arise.
