This week saw construction output for new work tiptoe up in Q2. Bellway and Persimmon turned a healthy profit yet others moaned of the need for cheap funding from Homes England to fund their next build. Rental prices got burnt by affordability and demand while house prices remained stagnant as transaction volumes rose. Welcome to this week’s UK Property News Recap – 15.08.2025.
The bigger the better the wind turbine divides opinion
The MCS Foundation wants the 11.1 metre limit for wind turbines to be tripled to 30 metres and to open up the types of homes that can power up. Farmers and commercial units would feel the benefit but residential communities only see it as detrimental to their outlook.
International buyers pick up the domestic slack
Indian investors followed by the Nigerians, Polish and Irish knocked the Chinese off the top spot by increasing their stake in the UK rental market. The “share of buy-to-let companies set up by at least one non-British shareholder has increased from 13pc in 2016 to 20pc today,” according to Hamptons.
Rental growth retracts
A combination of affordability breaches and rate cuts moving first time buyers onto the ladder resulted in the first annual decline in rents since 2020; the average rent on a newly let property falling 0.2% year on year in July, according to Hamptons. The steepest fall was in the capital down 3%; Wales also reported falls along with the north-east of England, Yorkshire and the Humber but the East Midlands (3.4%), West Midlands (2.7%) and south-west England (2.6%) all continued to see rises.
House price fall cools in July
According to Acadata HPI: for the sixth consecutive month house prices fell; down 0.6% in July to £353,300, 2.2% lower than a year ago. Yorkshire and the Humber, as well as the North East, were the only English regions where prices remained slightly stronger than a year ago. Meanwhile, the South East has overtaken London as the primary drag on prices in recent months. These recent discounts have however sparked interest which has boosted transaction numbers. Looking ahead, expectations are for a more stable market from which buyers and sellers can move on from. The affordability strain easing with wage increases and elevated stock levels offering choice maintaining prices on an even keel.
Transactions due to rise
According to TwentyEA Demand is up across all price bands with the highest growth in the £350k–£1m range (9.5%), followed by the £200k–£350k band (8.8%). As a result the number of transactions is forecast to reach 1.18m at the end of the year.
Developer Bellway builds on last year’s numbers
Bellway’s trading update for the year ended 31 July 2025 showed the group’s completions rose 14.3% to 8,749 homes accompanied with housing revenue, which increased 17% to over £2.76bn.
The overall average selling price also rose to £316,000, from £307,909 in 2024. This alongside an uplift in the group’s forward order book to 5,307 homes (2024 – 5,144 homes), with a value of £1,519.4m (2024 – £1,412.9m) has the developer feeling more sure-footed going into 2026.
Calls come for the National Housing Bank to fund developers
Construction became reliant on cheap borrowing, it was the mortar that shaped UK housing stock, without it developers are reluctant to build at speed or in great numbers and are hoping to hold Homes England to ransom over it
Developer Persimmon shows an uplift in profits
Persimmon’s half year results showed the group is working at the expected standard. Private completions were up 7% and underlying operating profit up 13%. The group looks set to go into greater depth moving forward, their forward order book up 11%.
Foxtons’ profits from New homes surge from first time buyers
First time buyers line Foxtons’ New Homes Department pockets; sales up 16.5% in H1; worth an additional 2.2% in value. 72.6% required lending while the rest were cash. Despite the end of the stamp duty holiday expectations are to build on these numbers as rates reduce
Two year rates fall below 5% for the first time since 2022
According to Moneyfacts, the average two year residential mortgage is now under 5% while the average five-year residential mortgage rests at 5%. Many sellers will hope this shall provide a boost in time for the autumn market and temper any potential tax rises in the budget.
RICS surveyors paint a subdued market picture
Summer slows transactions and price growth leaving a rather subdued outlook for the coming months in RICS Residential Market Survey for July. The 12 month outlook, which many sellers were banking on, looks only marginally elevated where it once held more promise. Concerns over tax rises and limited rate reductions tethering growth in more expensive regions but not movement where a compromise can be reached.
Monthly construction output got a refurb
As the weather improved so did the desire to repair and maintain properties before the holidays kicked in. This boosted monthly construction output by 0.3% in June 2025 but infrastructure new work and private commercial new work took a step back, leading to a 0.4% decrease in new work overall.
Inheritance speculation causes concern
Rachel Reeves considers adjusting the current tax loop that enables tax free gifting if the giver lives seven years.
Scraping the inheritance tax barrel, isn’t going to incentivise the Bank of Mum and Dad to deposit housing funds as readily and will further deter the wealthy from contributing to the UK government’s “Just giving page” to fill the debt gap.
Uniting student accommodation
Unperturbed by the drop in international students, Unite agreed to Buy Rival Student Landlord Empiric in a £723m deal which represents a 3.7% discount on its assets but a 10% increase on share price.
Canary Wharf sings of an uplift in values
After 11 consecutive quarter falls; Canary Wharf can sing about an uplift in commercial values. “The value of a £2bn portfolio that contains about half of Canary Wharf Group’s office holdings rose 0.6 per cent between March and June, according to data released by CWG, the landlord and manager of the wider Canary Wharf estate.”
Mortgage arrears decrease but possession are on the rise
Homeowner mortgages in arrears decreased in Q2 for both residential and buy-to-let mortgages; down 3% and 5% respectively. However possessions increased by 10% on the previous quarter but were down 2% in the buy-to-let sector.
And that concludes this week’s UK Property News Recap 15.08.2025. Any comments or suggestions please get in touch.
