This week renters were squeezed further and dissatisfaction swelled. Grosvenor dined out on the winnings and John Lewis reserved a seat at the table. In sales, activity picked up post Easter but increased stock levels tethered further growth. The government, however, was keen to unleash developers from construction obstacles by silencing councillors and creating exemptions for smaller builders. Welcome to another UK Property News Recap – 30.05.2025.
The UK coastal hotspots
The post-pandemic call of the sea has been muffled by the call of the office. This alongside the introduction of the second homes tax has “stamp”ed on house prices. The average house price for a property by the sea fell 1% nationally to £295,991. Despite this the north/ south coastal house price divide remains with warmer climes commanding higher prices. Yet, according to Lloyds Coastal Homes Review, despite a 3% fall in house prices, Sandbanks remained the most expensive coastal location, with an average property price of £965,708, while Campbeltown in Scotland was the least expensive at £103,078.
Greater Manchester Mayor comes under “affordable” fire
When handling others’ money, principles appear to have gone awry for Mr Burnham who opted to pay out 60% of the £300m Treasury grant to private developer, Renaker, who didn’t include any affordable housing but remembered the infra-red sauna in their blocks of luxury flats
Stock levels increase controlling house price increases – Zoopla HPI for May 2025
Post stamp duty holiday blues were replaced with sugar highs after Easter causing sellers to take their homes to market in their droves hoping to secure a buyer as rates trickled down. As a result there were 13% more homes on the market than last year and 6% more agreed sales according to Zoopla’s latest HPI. The increase in choice came at a price though; homes sold, on average, for £16k less than the ticket price. Despite this the average UK house price has edged 1.6% higher than a year ago to £268,250, driven by increased activity in northern regions where properties remain relatively affordable.
For all life’s rental moments…
John Lewis is “banking” on the build-to-rent sector in Ealing. The government planning inspector has stamped on residents’ and councils’ disapproval by signing off on 430 new homes that’ll tower over John Lewis’s existing car park, with towers 20 storeys high.
Grosvenor Group get rental boost
The Grosvenor Group made a dramatic comeback as commercial and residential rental growth in prime locations swelled from increased demand resulting in a pre-tax profit of £24 million for the 12 months to the end of December, after a £175 million loss in 2023.
Minister look to ease rules for small builders in England
The government is paving the way for a smoother and speedier road to recovery for smaller developers; considering exemptions from some environmental controls as well as the safety levy, put in place to fund repairs to UK buildings that are no longer deemed safe. This, along with planning reform, will encourage developers to map out future plans but only when there is a buyer to pick up the tab at the other end.
Rental stock falls causing prices to seesaw up
The number of UK properties available to let has hit an all-time low of 284,000, tumbling 18pc in the year to March, according to analytics firm TwentyCi. The figure marks a 23% fall compared to the number of lets available before the pandemic.
Previous governments wanted to block investors from consuming UK property stock that otherwise would have satisfied owner occupiers. They’ve achieved this, by increasing tax and legislation, and with a little help from increased rates, giving over-leveraged landlords a shove, this has resulted in prices edging lower but not enough for many to still afford, now rates reside above 3.5%.
As stock levels depleted, rental price growth grew, scuppering any hopes of saving for a deposit and therefore maintaining the status quo. The only significant change is the introduction of the build to rent market, which in time, will set their own market rates and further tie renters into a lifetime of ASTs. Cue, government with a scheme to help buyers… buy….
Housing ombudsman’s workload buckles under remedial work strain
Complaints to the property ombudsman have risen 474% since 2019/20 resulting in mounting social unrest, yet remedial needs come at a time when there is no money to preserve let alone replace.
Social landlords neglected to preserve their aging housing stock causing mounting unrest from its residents. Somewhere along the line, social landlords forgot a property is not just a roof but a home. The fact the government is having to create legislation to enforce a duty of care shows how public funds have been misused by those providing a housing service.
Councillors’ voices to be silenced over planning choices
The need for more homes overrides democracy. “All planning applications will now bypass elected councillors by default, with only larger schemes able to be called into committees if planning officers agree”. Our UK foundations would now fall to planning officials who will have to build up public trust by making productive and inclusive choices.
Renters hit hardest as household costs rise
The ONS found renters felt the weight of annual inflation greater than owner occupiers. While those still in work with children carry a heavier burden than those retired or childless. Private renter households had the highest annual inflation rate of 3.6% in March 2025, followed by social renters at 3.0%. While outright owner occupiers experienced the lowest annual inflation rate, at 1.8% in the year to March 2025; followed by mortgage households at 2.8%.
EPC’s get upgraded
A good paper trail is now essential to boost your EPC score as the notoriously inefficient grading system gets upgraded. Energy assessors will shortly collect and record more specific information about a property, including types of glazing and their condition, heating system efficiency based on evidence such as model numbers or manufacturer data, and the presence of smart heating controls. Without these, expect to be downgraded.
Post stamp duty transaction volumes fall
The before and after effects of the stamp duty holiday were displayed in this week’s HMRC’S UK residential transaction data for April 2025. Transaction numbers were estimated to be 64,680, 64% lower than March 2025. When non-seasonally adjusted this estimate increased to 66%.
And that concludes this week’s UK Property News Recap – 30.05.2025 if you have any suggestions or comments do please get in touch.
