The UK property market in Q3 2025 showed gradual stabilisation with selective recovery. Investment activity strengthened in institutional “living” and alternative sectors—particularly Build-to-Rent (BTR), hotels, and industrial outdoor storage (IOS)—while development-led residential and construction remained under pressure. Capital values and rents edged upward across commercial sectors, supported by stable yields, but regulatory uncertainty, high costs, and climate-related risks continued to constrain sentiment and new supply.
Overall, the market is bifurcated: income-secure, scalable assets attract capital, while speculative development and secondary assets face ongoing headwinds.
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