2025’s Property Winners and Losers

The UK housing market continues to show resilience, but recent data reveals a shifting landscape that property investors should watch closely. Over the past 12 months, semi-detached homes have outperformed, rising by 3.4%, while detached and terraced properties followed with more modest gains of 2.5% and 2.4% respectively. In contrast, flats have slipped, with average prices falling by 0.3%, signalling a cooling demand for smaller units.

This isn’t just a short-term trend. Over the past decade, flats have seen price growth of around 20%, which is less than half the increase seen in terraced houses. For investors, this raises important questions about asset selection and long-term capital appreciation.

While annual growth remains steady at 2.2%, the third quarter of 2025 (July to September) saw a noticeable slowdown in momentum. Experts link this to Budget uncertainty, with many buyers and sellers holding back amid economic caution. For landlords, this could mean slower tenant turnover and more stable rental demand—but also fewer opportunities for quick flips or aggressive price gains.

The regional divide is also becoming more pronounced. Northern England is leading the charge with 5.1% year-on-year growth, compared to just 0.7% in southern England. For investors, this highlights the importance of location strategy. Areas like the North West and Yorkshire & Humber continue to offer strong growth potential, especially for those targeting long-term returns.

Investor Takeaways

• Flats are underperforming: Consider whether your portfolio is weighted toward property types with stronger growth.

• Regional strategy matters: Northern regions are outpacing the South—look beyond London for better value and appreciation.

• Budget caution is real: Economic uncertainty may slow transactions, but it also creates opportunities for strategic acquisitions.

• Long-term trends favour larger homes: Semi-detached and terraced properties continue to show robust growth over time.