Where the Property Market Stands Now and What Comes Next
The UK property market continues to evolve, shaped by shifting interest rates, regulatory reform and changing investor behaviour. While headlines often focus on challenge, the underlying picture is far more nuanced and for professional investors, increasingly constructive.
At REALM 47, we view the market through a long term lens, focusing on fundamentals, income resilience and scalable opportunity. Here’s where the market stands today and what investors should be preparing for over the next 6 TO 12 months.
Interest Rates and Lending Sentiment: A More Stable Backdrop
With the Bank of England base rate now having reduced, the direction of travel is clearer. While base rate cuts don’t feed immediately into mortgage pricing, swap rates have eased and lender confidence has improved.
For property investors, particularly those operating through limited companies, this has translated into:
Continued appetite from specialist lenders
Competitive pricing for HMOs, multi-unit blocks and mixed-use assets
More pragmatic underwriting for experienced borrowers
Rates in the mid 4% range for HMOs and investment stock remain historically reasonable, especially when assessed against rental yields and long term performance.
This environment supports planning, not speculation, and rewards investors who structure finance strategically rather than reactively.
Professional Investors Moving In as Others Exit
A clear pattern continues to emerge across the market:
Smaller or accidental landlords are exiting, often due to tax or regulatory pressure
Professional investors are stepping in, acquiring going concerns, portfolios and stabilised assets
This shift is creating opportunity, particularly where properties are under managed, tired or held personally rather than within company structures.
For investors with liquidity and a long term view, this remains one of the most attractive acquisition environments we’ve seen in recent years.
Rental Demand and Yield Resilience
Despite ongoing change, rental demand remains robust across much of the UK.
Supply remains constrained
Tenant demand continues to outpace available stock
Well presented, compliant properties are letting quickly
This dynamic continues to support yield resilience, particularly in regional markets where affordability remains strong and rental growth has been steady rather than inflated.
Regulatory Progress: Raising Standards, Not Removing Opportunity
Regulatory reform remains a key theme, with Renters’ Reform and EPC changes continuing to shape the landscape.
While these reforms raise standards, they also reinforce an important truth the sector increasingly favours professional, well prepared landlords.
Investors who focus on quality, compliance and long term stewardship are far better positioned than those relying on short term or poorly managed strategies.
For a deeper dive, see our recent blog on the Renters’ Right Act here.
Regional Spotlight: Where Opportunity Is Performing
Across the regions we actively track, several locations continue to demonstrate strong fundamentals.
Hull
Hull remains highly attractive for yield focused investors. Lower entry prices, strong student and professional demand and continued investment into education and renewable energy support both HMO and family rental strategies. Hull continues to suit investors seeking stability with growth.
York
York benefits from consistent demand driven by tourism, education and employment. While entry prices are higher than some regional counterparts, rental demand remains strong, particularly for quality stock and shared accommodation close to the city centre.
Lincoln
Lincoln continues to perform well for student led HMOs and mixed-use opportunities. Affordability and steady tenant demand support sustainable yields, making it a strong option for investors building balanced portfolios.
Liverpool
Liverpool remains one of the most liquid regional markets, supported by population growth, employment and regeneration. Opportunities continue to exist across HMOs, family rentals and larger portfolio acquisitions, particularly where investors take a selective, asset led approach.
Across all four locations, the common thread is clear - regional markets with genuine demand fundamentals continue to outperform inflated, speculative areas.
Investor Behaviour: What’s Working Now
The most successful investors we work with are increasingly focused on:
Going concerns rather than heavy refurbishments
HMOs and multi-unit assets with established income
Portfolio acquisitions and mixed-use property
Planned upgrades aligned with refinance timelines
With contractor availability and costs still a consideration, this approach allows investors to deploy capital efficiently while maintaining flexibility.
Our View
The property market is not without challenge, but it is far from broken.
For professional investors with clarity, liquidity and a long term outlook, the current environment offers meaningful opportunity. Lending conditions are stabilising, rental demand remains strong and regulatory reform is raising the bar in favour of those who operate well.
If you’d like to stay close to market updates and access investment ready opportunities, we invite you to join the REALM 47 Investor Clubhouse here.
The Investor Clubhouse is free to join and provides:
Access to investment properties and going concerns
Market insight and strategic updates
Opportunities aligned to professional investor criteria
It’s designed for investors who value clarity, consistency and informed decision making.