Post-Election Property Shake-Up: What’s Really Coming

Last Updated on 17 October 2025

The UK housing market is taking a cautious breath after the election dust settled. Confidence is slowly creeping back with a new government in place. Nonetheless, it is a measured optimism. Interestingly, the post-election economic landscape has influenced more than just the real estate property scene.

One such sector is internet gambling, where fans of games of chance enjoy themselves through licensed operators like casino Fortunica. The said industry has seen exponential growth in the last couple of years and has been responding accordingly to changes in consumer confidence and disposable income. Additionally, with tighter regulation and rapid evolution of digital platforms, the gambling scene’s trajectory has given a parallel lens through which we can observe consumer sentiment at large.

Back to the property market, buyers are waiting to see if campaign promises on housing supply and stamp duty reforms turn into real action. Sellers are testing the market again, encouraged by stable mortgage rates and steady demand. Meanwhile, investors are watching policy signals closely. Each is weighing whether the next few months will bring opportunity or overcorrection. The mood for now is hopeful, but with one eye still on the fine print.

Housing Policies and Promises by the New Government

The new government has made housing a central pillar of its post-election agenda. It promised to tackle affordability, boost supply, and simplify planning. Labour pledged to build 1.5 million new homes during the next parliament. Their manifesto commits to:

Fast-tracking planning on brownfield sites,
Introducing mandatory housing targets for councils
Strengthening the presumption in favour of sustainable development.

Labour also pledged to increase funding for the Affordable Homes Programme. First-time buyers could see extra support through new deposit schemes and potential stamp duty relief on lower-priced homes. The proposed reforms to the rental sector may reshape landlords’ investment decisions. These include stricter quality standards and revised eviction rules in a bid to protect consumers more whenever they acquire properties.

Will House Prices Rise in 2025?

Experts generally agree that UK house prices are set to edge upward in 2025. But the changes will be modest. Most forecasts point to growth between 1% and 4%. However, history shows that predictions can be hit or miss, as unexpected factors often shift the market’s direction.

For instance, Halifax expected prices to fall in 2024, yet they rose by 3.8%. Still, expert predictions offer a useful snapshot of what could shape the market in the coming months. Here are some quick insights:

HomeOwners Alliance: +2% growth forecast: The HomeOwners Alliance expects UK house prices to rise by 2% in 2025. This is slightly lower than its earlier 4% forecast. The group notes that a 10% rise in homes for sale and slower mortgage rate drops are tempering growth. Manchester remains a strong performer, while Wales may cool due to higher stamp duty rates.
Savills: slower growth at +1%: Savills has trimmed its 2025 forecast to 1%. The firm points to decelerating growth and uncertainty over new property taxes. Still, Savills expects stronger years. They predict 4% in 2026, 6% in 2027–2028, and 5.5% in 2029.
Rightmove: modest +2% increase: Rightmove’s mid-year revision puts house price growth at +2% for 2025, halving its earlier 4% estimate. The platform’s Tim Bannister says intense competition among sellers is keeping prices in check, though total property transactions are expected to remain steady at 1.15 million across the year.
Nationwide: between +2% and +4%: Nationwide forecasts a 2–4% price rise in 2025. Chief Economist Robert Gardner says affordability pressures will ease as interest rates fall slightly and wages outpace price growth. However, stamp duty changes could cause temporary market volatility. Expect a rush of early-year transactions followed by a quieter mid-year period.
Zoopla: +2.5% price growth: Zoopla predicts a 2.5% increase in house prices for 2025, alongside a 5% rise in agreed sales. The portal expects the south of England to lag behind national averages. It also warns that higher stamp duty costs from April may slow growth in the £125,000–£250,000 price range.
OBR: +2.8% and long-term growth ahead: The Office for Budget Responsibility (OBR) anticipates 2.8% growth in 2025. In the longer term, the OBR projects average house prices to rise from £265,000 in late 2024 to around £295,000 by 2029.

Pressures and Opportunities in the Rental Market

Rent is still climbing and has been a thorn in the flesh for many tenants across the nation. The average UK private rent rose 5.9% over the 12 months to July 2025. The numbers reached about £1,343/month. But growth has slowed. New lets only increased 2.4% year-on-year by July 2025. Landlord sentiment is cautiously optimistic. Rental yields hit 7.4% in Q1 2025. This is a decade high. But many landlords feel squeezed by compliance costs and shifting tax burdens.

Meanwhile, on the regulatory front, the Renters’ Rights Bill promises to abolish no-fault evictions and impose tighter obligations on landlords. These changes could curb flexibility and shift how landlords set the pricing and manage their properties.

Regional Hotspots to Watch

Several UK regions are positioned to outperform in 2025. Development is driven by new infrastructure and relative affordability. Manchester remains a standout performer. House prices have gone up 33% over the past five years compared with a 15% UK average. Rents are forecast to rise 21.7% over the next three years. Strong transport links and a growing economy make the region one to watch.

The Midlands is seeing renewed energy, especially around Birmingham. Areas like Sutton Coldfield and Great Barr could see up to 3.5% price growth this year. Rising demand is pushing rental yields to 5–6% in regions like Edgbaston and Leamington Spa.

Is Hope on the Horizon for First-Time Buyers?

The season beyond 2025 offers cautious optimism for first-time buyers. Affordability is slowly improving after years of rising prices and tight lending. This comes as wage growth begins to outpace house price inflation. The government has promised new deposit support schemes and expanded access to 95% mortgage products.

However, a couple of challenges still remain. For instance, the average UK house price still sits around £285,000, which is rather steep. As such, even a 5% deposit to get your hands on the property requires nearly £14,000 upfront. Thankfully, potential stamp duty adjustments could ease pressure on lower-value homes.

The Long-Term Outlook Is Positive

There you have it, looking beyond 2025, the UK housing market is expected to enter a steadier growth phase. Analysts at Savills forecast 4% growth in 2026, as mortgage rates settle and buyer confidence strengthens. This will rise to 6% annually through 2027–2028. The OBR predicts average house prices will climb from £265,000 in 2024 to around £295,000 by 2029.

However, emerging risks could temper that optimism. Labour shortages in construction and high material costs are imminent. Tighter environmental rules may also limit new housing supply. Still, most experts agree the next few years should bring gradual, sustainable growth. Demand is supported by stable employment and continued policy attention on housing access.