June 2025 saw a steady flow of activity in the UK property market. Whilst mortgage rates remained low, landlord concerns remained the same due to strict regulations. Although property sales were stable, legal changes and summer election buzz kept many buyers and landlords on edge. Here’s a look at the UK property market over the past month.

Mortgage Deals Still Low, So Buyers Take Advantage

Lenders continued to offer competitive mortgage rates throughout June, with some five-year fixed deals still available below 4%. This has generated steady buyer interest, particularly from first-time buyers and homeowners seeking to remortgage.

Estate agents across the UK reported an increase in mortgage applications, especially within regional areas where house prices are slightly more affordable.

Why it matters:

Low mortgage rates are helping to keep the market moving, but with inflation still a concern, buyers are being warned that these rates may not stay low forever.

Renters' Rights Bill Is In Final Stage

After months of debate, the Renters' Rights Bill moved closer to becoming law this month. Minor updates were made, but landlords remain concerned about the unclear wording and the potential for future long-term eviction delays.

Tenant groups, on the other hand, are pushing for even stronger protections before the bill becomes law.

Why it matters:

If passed, the law will change how private rentals are managed in England. Landlords will need to plan for stricter rules and longer processes when dealing with problem tenants. This could lead some to sell their rental homes, affecting supply.

Fewer Rental Homes Available and Rents Rising Again

Reports in June show that the number of available rental properties has decreased in many cities, particularly in London, Manchester, and Birmingham. With fewer homes to choose from, average rents have increased again, and some areas saw rises of up to 5% over the past three months.

Why it matters:

Landlords leaving the market or reducing their portfolios could make it harder for tenants to find homes. This also puts more pressure on affordable housing in high-demand areas.

Market Stays Steady Despite Election Noise

Although political discussions and the upcoming general election have created some uncertainty, the property sales market remained steady in June. Most activity came from upsizers, relocators, and buyers looking to move before the school holidays.

House prices remained flat primarily across the UK, with some slight increases in the South West and East Midlands.

Why it matters:

Buyers and sellers are still moving, but many are waiting until after the election before making big decisions. Political changes could affect taxes, housing policies, and market confidence.

Landlords Warned About New Safety Rules

Councils in Liverpool, Sheffield, and parts of London announced more inspections and enforcement this month. Several landlords were fined for failing to maintain good housing conditions, not obtaining gas safety certificates, and not participating in local licensing schemes.

Why it matters:

Landlords must now be extra careful to stay compliant with safety laws. Ignoring even minor rules can result in significant fines or bans on renting out properties.

What’s the Bigger Picture?

June 2025 was a good month for the property market. Mortgage rates kept demand healthy, but changes in the rental sector, driven by law and supply issues, created challenges for landlords and tenants alike. 

The buyers are encouraged to act quickly if they see a good deal. Landlords, on the other hand, should review their legal obligations and be prepared for further reform, as tenants may face higher rents and fewer choices in the coming months.