Legacy Weekly Roundup August 26th 2025
Market & Prices
The UK housing market is experiencing inflationary pressures, with food price inflation reaching 4.2% in August, the highest in 18 months. This rise, driven by increased costs of staples like chocolate, butter, and eggs, could impact household budgets and housing affordability. Additionally, speculation surrounds potential changes to property taxes, such as replacing stamp duty with an annual property tax for homes over £500,000, which could significantly affect markets in London and the South East. The UK House Price Index for June 2025 shows a 1.4% increase in average house prices since May 2025, with an annual rise of 3.7%, bringing the average UK property value to £269,000.
Mortgages & Finance
Inflation in the UK rose to 3.8% in July, primarily due to increased air fares and food prices, which may influence the Bank of England's interest rate decisions. Economists predict a cautious approach to future rate cuts. The UK Property Transactions Statistics for June 2025 reported an estimated 94,000 residential property transactions valued at £40,000 or more, marking a 1.3% increase from June 2024.
Rental Market & Landlords
The private rented sector is seeing a slowdown in rent increases, with rates falling by about a third over the past year. Despite this, the market remains fragile, with risks of homelessness as more landlords sell properties. The NRLA emphasises the importance of inventory reports in deposit disputes and highlights concerns over the Renters' Rights Bill, which could impose significant burdens on landlords.
Policy & Legislation
Labour's focus on increasing affordable housing supply and strengthening tenant rights is reshaping the lettings market. The government is considering significant reforms to property taxes, including replacing council tax with a local property tax and introducing a 'mansion tax' for homes worth over £1.5 million. The Renters' Rights Bill, nearing Royal Assent, is set to bring significant changes, including the abolition of Section 21, potentially increasing court delays in repossession cases.
Planning & Development
Efforts to bring empty homes back into use vary across regions, with some councils offering financial incentives like interest-free loans. Expanding successful schemes nationally could be beneficial, but requires government support.
Data & Research
The British Retail Consortium's shop price monitor indicates a significant rise in food price inflation, which could affect housing demand and affordability. The UK House Price Index offers insights into property price changes and transaction volumes, essential for market analysis. The OECD highlights the UK's high property tax share relative to GDP, prompting discussions on potential tax reforms.
Industry Moves & Corporate
The NRLA has partnered with Hybr, a student and graduate lettings platform, to enhance the rental experience. This collaboration aims to streamline lettings processes and improve service offerings for landlords and tenants. The NRLA is also launching NRLA Connect, a series of regional events to engage landlords and industry stakeholders.
Other Noteworthy
The NRLA's UK Housing Conference 2025 will feature prominent figures such as business journalist Steph McGovern and TV property expert Sarah Beeny. These events aim to address current challenges and future directions in the housing market. Additionally, unique properties on Rightmove, such as a Victorian villa with sea views and a lakeside castle in Scotland, continue to attract interest, highlighting a niche market for characterful homes.
This briefing was produced automatically using Legacy’s proprietary in-house AI models. Contact our team to learn more about how Legacy uses AI to find you the best investment deals in property.
