The property market in June 2025 was defined by stable and subtle shifts, strengthening the hand of investors with existing portfolios and creating a secure environment of opportunity for new investors. In this article, we will explore June 2025’s property news and how these developments alter the market for investors going forward.
UK house price growth slows
UK house price growth has slowed, according to Zoopla’s June 2025 House Price Index. The agency found that while sales have increased by 6% – the fastest rate for 4 years – price growth has only risen by 1.4%. This is higher than the 0.3% increase from June 2024, but is lower than the 2% rise in February.
Currently, price growth is constrained by the cost-of-living and affordability pressures. UK earnings are rising and the current inflation levels mean that further rate cuts are unlikely to come in the upcoming month, despite demand for homes being higher than it was a year ago.
The slow and steady growth we have witnessed in June underscores why property is best served as a long-term investment by investors. Steadier growth allows investors to more accurately forecast their returns over a longer period, enabling better planning to maximise cash flow.
Interest rates held at 4.25%
The Bank of England has held interest rates at 4.25%. While not unexpected following the increase in inflation in May and the outbreak of conflict in the Middle East, the Bank’s decision will be disappointing to investors around the country who were hoping for more encouraging conditions for investment.
The Bank’s decision to maintain rates is in line with their plans to gradually reduce rates over 2025 and 2026. Governor Andrew Bailey suggested a rate cut could follow in August, but this will be dependent on the performance of the broader economy.
By gradually reducing interest rates, the Bank is creating a more stable economic environment, ultimately benefitting investors. With the potential for economic uncertainty in the near future, the current investment conditions represent a great entry point for investors. Most lenders are now offering buy-to-let mortgages for below 4% on fixed rates, such as HSBC. What is perfect should never stand in the way of what is good, and investors should act while current lending conditions are more favourable.
The Future Homes Standard
Secretary of State for Energy and Climate Change, Ed Miliband, announced the majority of new builds will be fitted with solar panels. This will require developers to add panels unless the buildings fall under certain exemptions, such as being covered by shade. This will save the typical household £500 a year in energy bills.
These rules will be included in the Future Homes Standard, which is due to be published in the Autumn and will detail ways for improving energy efficiency and reducing carbon emissions in housing.
Affordability is one of the key factors tenants consider when selecting their rental property, emphasising the importance of investing in eco-friendly buy-to-lets. Investors should consider off-plan property for this reason, as they are constructed with the latest materials and appliances, making them incredibly energy efficient.
Read here to find out more about what tenants want from their ideal rental property.
UK mortgage changes
How mortgages work in the UK is fundamentally changing, and this could have a potential impact on the property investment sector. Interest-only loans could be made more accessible by lenders after they largely disappeared following the 2008 recession. 100% mortgages, where you pay no deposit but pay a higher interest rate, are also increasingly being offered by lenders. Alongside the rise of the 95% and 90% mortgages, lenders are beginning to encourage higher home ownership across the UK.
The widening accessibility of these types of mortgages will see many tenants exit the rental market to purchase a home. This could drive higher prices across the market due to the increased demand. Investors should closely monitor the market and stay focused on areas of dense population, such as major city centres and towns, where long-term rental accommodation will remain popular.
Liverpool property news
Liverpool house prices increase
The average price of property in Liverpool has increased to £183,000, according to the ONS. This is a £3,000 increase from the £180,000 it was previously and is a 14.8% increase from April 2024. This rise was higher than the average 3.1% increase across the entire North West over the same period.
The city outpacing the broader North West’s price growth reflects the impact of the ongoing regenerations, infrastructure development, and improving demand for property. By entering Liverpool’s property market today, investors can capitalise on the affordable property prices and high rental yields, while positioning themselves to benefit from the city’s capital growth – forecast to be 29.4% by 2029.
Former police station site to be regenerated
The government housing and regeneration agency, Homes England, is set to buy the former police HQ in Liverpool city centre. Located next to the Liverpool ONE shopping centre, the former police station fronts the Strand and is directly across from the Royal Albert Dock. The site has potential to be transformed into a mixed-use development, comprising residential, hotel, retail, leisure, and commercial spaces.
Waterfront skyscraper plans
Huge plans for a £1 billion skyscraper development in the King Edward Triangle on the edge of the city centre have been put forward. The development could create as many as 2,000 housing units across a number of skyscrapers, as well as a number of business spaces and Liverpool’s first ever 5-star hotel.
This comes as the City Council lifted a covenant on the site to enable the construction of skyscrapers. This will elevate the waterfront’s already significant development by creating a wave of new residential and business space in this section of Liverpool. This will likely see a wave of major businesses move to the waterfront, making the surrounding area more desirable for tenants who have employment in the area.
June 2025 property market: stable and subtle shifts
The June 2025 property market was defined by stable and subtle evolutions that have laid the foundation for the market for the rest of the year. The Bank of England’s decision to hold interest rates, the details revealed about the upcoming Future Homes Standard, and the steady price growth in the housing market, all highlight key areas of opportunity for investors. By focusing on locations with high capital growth projections (such as Liverpool) and on a long-term strategy (such as investing in off-plan property) investors will be primed to net a strong return on investment.
If you’re looking to explore the latest market opportunities, Advantage Investment is here to provide guidance on how to align your strategy with achieving consistent high returns. Get in touch with Advantage Investment today and we will connect you with one of our property experts.
