UK Property Market Sep 2025

The UK property market is shifting — though not always in ways the headlines suggest.

Speculation over changes to property-related taxes, including stamp duty and capital gains, has slowed some transactions, particularly at the upper end. On the surface, this looks like turbulence. But turbulence often creates entry points. Sellers under pressure, delayed transactions, and political noise open doors for well-prepared operators.

So, what’s really happening?

Rental demand continues to climb, with rents outpacing inflation in most regions. Mortgage costs remain high, meaning fewer buyers and more long-term tenants. Meanwhile, potential stamp duty changes — shifting costs to sellers — could tilt negotiations in favour of buyers.

For observers of the market, the takeaway is simple: caution is required, but inactivity also carries a cost.

At BNKI, our work is shaped around conditions like these:

• Diversification — balancing activity between prime London assets and yield-driven projects in the Midlands and North.

• Alternative uses — exploring assisted living, supported housing, and serviced accommodation aligned with demographic and planning trends.

• Income focus — designing schemes with strong cash flow fundamentals.

• Structuring for resilience — factoring in potential legislative and tax shifts.

• Flexibility — progressing projects with more than one viable exit route.

Bottom line: Political shifts aren’t new — they’re part of the UK’s property landscape. What matters is structuring projects that remain sound under changing conditions.