April 2025 brought a number of significant developments likely to impact the UK property market in the months ahead. From global economic shifts triggered by Trump’s tariffs to government initiatives, this period has marked a shift for property investors. In this article, we explore how these changes could impact an investor’s investment strategy, and how investors can respond effectively.
The Fallout of Trump’s Tariffs
US President Donald Trump’s trade tariffs have sent a ripple through the global economy. The UK has been hit with a blanket 10% tariff on nearly all of its goods being brought into the US. The UK has appeared to have come off lightly compared to other economies, but UK exports to the US are at risk still, with some companies halting shipments. To combat the fiscal impact, the Bank of England will most likely reduce the base rate further to stimulate the UK economy. This will be of huge benefit to UK mortgage holders, as this will reduce mortgage costs. For buy-to-let (BTL) investors on a BTL mortgage, this can improve your cash flow, lower your monthly payments, and make it easier for you to remortgage and release equity from your property.
UK Lenders Ease Rules and Cut Mortgage Rates
All major UK lenders are now offering fixed rate mortgage deals with interest rates below 4%. Following the Bank of England’s base rate cut to 4.5%, lenders have been reducing their fixed rates to below 4%, making borrowing more accessible for BTL investors. BTL investors can access more competitive deals that allow them to increase their cash flow and overall returns.
While lenders could reduce rates further, these are not guaranteed. Lenders will be keen to protect themselves from taking on too much risk by offering generous mortgage deals. BTL investors should be aware that many of the lowest-rate deals available on the market still require borrowers to provide a sizeable deposit and a substantial fee to secure their mortgage. However, investors can offset these upfront costs with a smart strategy that maximises cash flow from their property.
Find out how to secure a BTL mortgage; read our article to learn why they might be your best option.
£100 Million Baltic Triangle Station Approved
Plans for the new £100m train station in Liverpool’s Baltic Triangle have been approved by city councillors. The new train station will be constructed on the edge of the city centre in the Baltic Triangle. The station will be created by redeveloping the disused former St James Station, which lies below the Baltic Triangle. Work is expected to begin on the new station toward the end of 2025, with hopes that the station will be ready for use by late 2027.
This development will improve connectivity and boost property values in the Baltic Triangle area, further highlighting the area and Liverpool as an exciting location for property investment. Improved transport links will make it easier to navigate the city—an increasingly important factor for prospective tenants.
UK House Prices Update
House prices in the UK remained stable in March, which is ideal for investors looking to enter the market. While the institutions that track the price of houses all have different criteria for the average price, all show no to minimum growth from March. While monthly growth is slow, the annual growth is high amongst all of their metrics. UK average property values are expected to rise by 2.5% by the end of 2025.
| Institution | Average House Price | Monthly Growth | Annual Growth |
| Nationwide | £271,316 | 0.0% | 3.9% |
| Halifax | £296,699 | -0.5% | 2.8% |
| ONS | £268,548 | 0.2% | 4.9% |
| Zoopla | £267,500 | 0.04% | 1.8% |
This is a testament to the idea that property is best as a long-term investment strategy, and will allow investors to earn high returns over a long period of time. BTL investors can find excellent value in more affordable areas—particularly in the North West of England—where strong rental yields and lower entry prices offer high return potential. Areas, such as Liverpool, are predicted to outperform the average by 4.5% in 2025, according to Savills, creating promising growth opportunities for BTL investors.
New Flats in England and Wales May Soon Be Commonhold
New flats in England and Wales could soon be commonhold, replacing leasehold as the most current type of ownership. This change, led by the Labour government, aims to dismantle the outdated leasehold system.
Key features of commonhold are:
- Full ownership of individual units
- Shared management of communal areas
- No ground rent or restrictive lease terms
Currently, there are fewer than 20 commonhold developments since the 2002 legislation. For buy-to-let investors looking to purchase new-build flats, commonhold offers freedom from ground rent and leases. While mortgage options for these types of property are currently rare, these will become more common on the mortgage market as more developments adopt the model.
Landlords Offered Five-Year Full Rent Deals by Government
Landlords in parts of England are now being offered five-year full-rental assurance agreements to house vulnerable UK families and adults, presenting a stable income stream for property investors. Serco, a Home Office contractor, is seeking properties in the Midlands, North West, and East of England to meet rising demand.
The scheme assures rent for five years—an attractive option for BTL investors looking for long-term rental stability. Landlords interested in participating can complete an online form or contact Serco directly for more information.
April 2025 Property Market: A New Market
April 2025 has ushered in key changes that are shaping the direction of the UK property market. With lower mortgage rates, improved infrastructure plans, and government initiatives altering ownership and rental dynamics, investors have new opportunities to refine their strategies. House prices remain stable and affordable areas continue to show promise, particularly for long-term investors.
If you’re looking to explore the latest market opportunities, Advantage Investment is here to provide guidance on how to align your strategy with the current trends in property. Contact us today and we will connect you with one of our property experts.
