Property portal Rightmove has revised down its 2025 UK house price growth forecast from 4% to 2%, pointing to a decade-high supply of homes and near-zero annual price growth as key factors. Yet despite the headline slowdown, experts say conditions remain ripe for landlords, as motivated buyers, steady demand, and improved affordability offer a stable backdrop for investment.
According to Rightmove’s latest market snapshot, average asking prices dropped by 1.2% in July, bringing the typical UK home price to £373,709. The steepest falls were seen in Inner London, where new sellers reduced prices by 2.1% in a bid to attract attention in an increasingly crowded marketplace.
Buyers Remain Active in a Cooler Market
Despite subdued price movement, Rightmove insists the market is far from stagnant. “It’s been a promising first half of the year for activity levels,” said Colleen Babcock, property expert at Rightmove. “Particularly when you consider that some buyers brought forward plans to beat April’s stamp duty changes.”
She added that buyer activity has remained strong even after the tax deadline: “We’re seeing more sales agreed and more new potential buyers entering the market than at the same time last year.”
This buyer interest, coupled with the current abundance of homes on offer, is creating a classic “buyers’ market”—a climate where landlords, especially those with cash to invest, may find well-priced opportunities in high-yield areas.
High Supply Pressures Pricing, Not Demand
Rightmove’s trimmed forecast stems largely from oversupply rather than weak demand. The volume of homes for sale is now at its highest in over ten years, forcing sellers to sharpen their pricing if they hope to secure a sale.
Babcock said the figures reflect a more price-sensitive market, not a downturn. “The healthy and improving level of sales being agreed shows there are motivated buyers out there… What’s most important in this market is that price is key to selling.”
She noted that sellers are responding accordingly: “It appears more new sellers are aware of this and are pricing strategically to stand out.”
For landlords, particularly those eyeing discounted entry points, such seller flexibility could mean securing solid assets at below-peak prices—especially in Inner London and other urban centres where price cuts have been deepest.
Landlords Positioned to Benefit
While slowing capital growth often prompts cautious headlines, experts suggest landlords should see opportunity where others see risk.
With affordability improving—boosted by falling mortgage rates and the possibility of further Bank of England rate cuts before 2026—many landlords are likely to find a favourable lending environment. Those with long-term strategies focused on value and rental yield may be best placed to capitalise.
“Looking ahead to the second half of 2025, we expect market activity to remain resilient,” Babcock said. “Crucially, buyer affordability is heading in the right direction, and another two Bank Rate cuts before 2026 would be a big boost to this.”
A Market in Transition, Not Decline
In sum, the UK housing market is in transition rather than retreat. The abundance of listings is reshaping buyer behaviour and pricing strategies—but underlying demand remains solid.
For landlords, the current climate may represent a window of opportunity to secure well-valued properties and position portfolios for long-term returns.
As the market adjusts, the message is clear: rather than sitting out, landlords may benefit most by engaging now—with a sharp eye for pricing and a strategy built for resilience.