The property market in September 2025 has been characterised by stability with encouraging signs of growth, both nationally and in key regional hotspots such as Liverpool. A combination of steady house prices, consistent buyer demand and continued regeneration in Liverpool highlights why property remains one of the most resilient long-term investments.
In this article, we explore September’s property news and outline what these developments mean for investors.
UK house prices and sales volumes hold ahead of the budget
According to Nationwide’s September 2025 House Price Index, UK house prices remained stable in September, with annual growth holding at 2.2%. While this represents modest gains, transaction volumes actually dropped 2% compared to the same time last year.
This slight drop in sales reflects a relative lack of surety and buyer confidence, and has been projected to fall further, driven by an unsettled and yet somewhat consistent mortgage report ahead of a budget statement from the government. Although affordability pressures remain, particularly in the South, the North West and Midlands are continuing to attract buyers due to lower entry prices and higher growth forecasts.
For investors, the combination of steady capital appreciation and resilient market activity underscores why property remains a reliable long-term investment. Robust transactions indicate a healthy market, and one that creates the right conditions for stable rental demand and consistent yields.
Interest rates held at 4%
The Bank of England has held interest rates at 4% for the fourth consecutive month, with inflation holding at 3.8%, which is itself a two-point increase on the same time last year.
The decision to hold rates reflects the Bank’s cautious approach, with Governor Andrew Bailey confirming that cuts are likely to begin in early 2026 if inflation continues to reduce and return to the 2% target.
For investors, today’s environment remains favourable. Many major lenders, including Barclays and NatWest, are offering buy-to-let mortgages below 4% on fixed rates. This presents an attractive entry point for investors to lock in affordable borrowing costs.
By entering the market now, investors can secure assets in high-growth locations like Liverpool while benefitting from lending conditions that remain significantly more favourable than during the rate peaks of 2023.
Green mortgages and energy efficiency
One of September’s most notable developments is the growing availability of “green mortgages.” Several lenders, including Nationwide and Lloyds, are piloting products that offer discounted rates for properties with EPC ratings of A or B.
This innovation highlights how energy efficiency is becoming a major driver in the housing market. For investors, new-build and off-plan properties which already meet higher sustainability standards are now even more attractive.
Alongside this, we are a year on from the government-backed National Wealth Fund announcing a £1 billion retrofit fund to help upgrade the energy efficiency of existing homes, with further support for the scheme announced in April of this year. With tenant demand for lower energy bills stronger than ever, investors focusing on eco-friendly property will be well-positioned to capture long-term rental demand.
Mortgage market innovation
In addition to green products, lenders are continuing to expand the availability of low-deposit mortgages. The number of 90% and 95% mortgage products has grown, while interest-only loans are also being reintroduced in certain cases.
This expansion is making home ownership more accessible, and while it may encourage some renters to move into the buyer market, rental demand in cities like Liverpool remains strong. The city’s large student population, combined with a growing professional tenant base, ensures that rental accommodation will continue to be in high demand.
For buy-to-let investors, these mortgage shifts highlight the importance of focusing on prime city-centre and regeneration areas, where tenant demand is unlikely to diminish even as home ownership expands.
Liverpool property news
Liverpool house prices increase again
Liverpool’s property market continues to outperform the wider region. According to the ONS, the average property price in Liverpool stood at £182,000 in September 2025, the most recent available information, marking a near 10% increase year-on-year.
This growth compares favourably with the 4.8% recorded across the broader North West, reinforcing Liverpool’s reputation as a leading investment hotspot.
Strong rental yields, affordable entry prices, and the city’s extensive regeneration pipeline are driving this outperformance. With Savills forecasting 31.2% growth in the North West by 2029, investors entering Liverpool’s market today are well-placed to benefit from both immediate income and long-term capital appreciation.
Multimillion-dollar expansion of Liverpool Knowledge Quarter
Liverpool’s Knowledge Quarter, driven by the ambitious KQ 2040, is currently undergoing a project of expansion and development on a sector-leading scale. The project will deliver new research facilities, labs, student housing and residential apartments, creating thousands of jobs in the process.
For investors, this is a critical development. The Knowledge Quarter already attracts a large population of students, academics, and healthcare professionals. With its expansion, demand for nearby rental accommodation is set to grow even further, making this area one of Liverpool’s most attractive buy-to-let locations.
Liverpool waterfront regeneration gains momentum
Plans are firmly in place for the first phase of the £1 billion King Edward Triangle redevelopment, a landmark project that will transform Liverpool’s waterfront. The scheme is set to deliver thousands of new homes, alongside office space, leisure facilities, and what will become the city’s first 5-star hotel.
This project will not only enhance Liverpool’s skyline but also boost the desirability of the surrounding areas. For investors, proximity to regeneration is a key driver of both capital growth and rental demand. Properties near the waterfront are expected to see increased tenant interest, particularly among young professionals seeking high-quality, centrally located accommodation.
September 2025 property market: stability with opportunity
Overall, September 2025 has been defined by a market that is stable yet full of opportunity. While national house price growth remains modest, sales volumes are consistent, lending conditions remain largely favourable, and tenant demand is being shaped by sustainability and affordability.
Liverpool continues to stand out as a leading investment destination, combining affordability with strong capital growth projections and an unparalleled regeneration pipeline. By focusing on off-plan and eco-friendly developments, investors can secure high-yielding assets that are aligned with the market trends shaping the future.
At Advantage Investment, we specialise in sourcing the highest-performing property opportunities in Liverpool. Whether you’re looking for long-term capital growth, consistent rental income, or a hands-off investment, our team can provide expert guidance tailored to your goals.
Contact us today to explore the latest Liverpool property developments and secure your place in one of the UK’s fastest-growing investment markets.
