Property Investment Tips for England and Wales in 2025

Jan 14, 2025

Property Investment Tips for England & Wales in 2025: A guide for consideration…

With 2025 now well underway, the property market in England and Wales is poised for growth, offering numerous opportunities for savvy investors. Here’s a guide to help you navigate this evolving landscape:

Key Investment Tips

1. Focus on Northern England

Northern regions are anticipated to outperform the national average in terms of price growth and rental yields. Cities like Manchester, Liverpool, and Leeds are particularly attractive due to their strong economic fundamentals and ongoing regeneration projects.

2. Consider Emerging Hotspots

Look beyond traditional investment areas. Cities like Nottingham, Sunderland, and Milton Keynes are showing strong potential for capital growth and rental demand.

3. Keep an Eye on First-Time Buyer Areas

First-time buyers are expected to remain the largest buyer group in 2025, supporting housing chains and unlocking moves for existing homeowners. Areas popular with this demographic could see increased demand and price appreciation.

4. Prioritise Energy Efficiency

With increasing focus on sustainability, properties that meet or exceed energy efficiency standards will be in high demand. Consider investing in properties with high EPC ratings or budgeting for energy-efficient upgrades in older properties.

5. Explore Build-to-Rent Opportunities

The build-to-rent sector is expected to continue its growth trajectory in 2025, especially in regions with limited rental stock.

6. Monitor Interest Rates

While interest rates are expected to fall in 2025, they may do so more slowly than previously anticipated. This could impact affordability for buyers and investors.

7. Consider Affordability Factors

Areas where housing remains relatively affordable are likely to see stronger price growth. Regions to watch include parts of the North West, areas of the Midlands, and coastal towns in Wales.

8. Stay Informed About Government Policies

Keep abreast of any changes in government policies, such as stamp duty rates or first-time buyer incentives, which could impact the market.

9. Diversify Your Portfolio

Consider a mix of property types and locations to spread risk and maximise potential returns. This could include a combination of residential and commercial properties in different geographical areas.

10. Research Local Regeneration Projects

Areas undergoing significant regeneration often offer strong growth potential. Look for major infrastructure projects, city centre redevelopment schemes, and large-scale housing developments.

Regional Outlook

According to Savills, the regions that could see the fastest capital appreciation in 2025 are the North West, the North East, Yorkshire and the Humber, and Scotland, all predicted to see prices rise by 5% next year. In contrast, the South West and the East of England are expected to see more modest growth at around 2.5%.

Conclusion

The property market in England and Wales in 2025 offers a wealth of opportunities for savvy investors. By focusing on growth areas, considering emerging trends, and staying informed about market conditions and regulations, investors can position themselves for success. Remember to conduct thorough due diligence and consider your long-term investment goals when making decisions.

If you’d like a conversation with Ross Pollard, Urpad Property Sales and Investment Specialist, to discuss your portfolio or other investment opportunities, please click here to contact the office