Rising mortgage rates have cooled the UK housing market, causing annual price growth to drop from 1.6% to 0.8% in September.

Rising geopolitical tensions may add fresh pressure on mortgages, inflation and housing demand.

Sellers return with confidence, but buyers still hold the upper hand

A flood of homes for sale, higher mortgage rates and cautious buyers are giving buyers more room to negotiate

An illustration of the age-demographic problem in the UK construction workforce and the rapid acceleration of the problem since 2019 Q1, based on the latest detailed breakdown of the employment data f...

The UK property market continues to attract investors looking for long-term growth, rental income opportunities, and strong capital appreciation. As we move into 2026, several UK cities are expecte…

UK Rightmove House Prices for June 2025: -0.3% m/m, compared with a typical 0.4% rise for the usual month of June * prior +0.6% +0.8% y/y, smallest annual rise since August 2024 * prior +1.2% Rightmove commentary: * "It appears that we're now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers' pricing" * more competitive pricing helping sales activity * number of agreed sales had risen to the highest in more than three years --- GBP update, little net change to begin the new week so far: This article was written by Eamonn Sheridan at www.forexlive.com.

* Prior -0.5% Slight delay in the release by the source. This article was written by Justin Low at www.forexlive.com.

Investing.com -- Morgan Stanley has turned the spotlight on student housing as one of the most resilient areas of Europe’s property sector, naming Unite Group (LON:UTG) as its new top pick. The brokerage said demand for student accommodation in the United Kingdom is set to strengthen as tighter immigration rules in the United States, Canada and Australia push more international students toward British universities. Unite, the UK’s largest purpose-built student housing operator, is positioned to benefit from the shift. According to UCAS data, undergraduate acceptances for the 2025/26 academic year are up 3% compared with last year, with non-EU international students rising 5%. These trends, combined with limited new supply, are expected to sustain rental growth above 4% for longer, compared with the 3-4% modeled by consensus. Unite has guided to like-for-like rental growth of 4-5% and occupancy above 97%. Despite these fundamentals, Unite’s shares have underperformed, closing at 709p on Aug. 28, near decade lows and significantly below Morgan Stanley’s price target of 1,000p. The brokerage said the derating reflected slower booking progress this summer, though it attributes that mainly to students delaying reservations after some operators offered late-cycle discounts in the prior year. Unite’s financials underline the resilience of the sector. The company reported net asset value per share of 972p in 2024, with Morgan Stanley estimating 1,034p for 2025 and 1,226p by 2027. Earnings per share are forecast to rise from 46.6p in 2024 to 52.5p in 2027, while dividends are projected to climb from 37.3p to 41.9p over the same period. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Leverage remains moderate, with net debt to EBITDA expected at 6.7x in 2025 and an EPRA loan-to-value ratio of 26%. The brokerage also flagged Unite’s pending acquisition of Empiric Student Property. If approved, the deal would expand Unite’s portfolio of 67,729 beds by about 7,700 and increase its exposure to international students to 32% of the tenant base, postgraduate students to 19%, and high-tariff universities to 69%. Morgan Stanley said the transaction should be earnings neutral in the first year and accretive from the second year as synergies are realized. Morgan Stanley said Unite combines scale, exposure to the strongest demand pools and a compelling valuation backdrop. “Student accommodation in Europe offers a great narrative,” the brokerage said, citing the pull of international enrollment and limited supply, and maintained its “overweight” rating with a 41% implied upside from current levels. Most investors will find it hard to answer that question with total confidence. Short of a guarantee, which no one can give you, the most successful traders stick to proven best practices without letting hype or hyper-vigilance take over their better judgment. But that doesn't mean you can't use smart shortcuts. If you're considering UTG, try chatting with WarrenAI, our powerful AI financial assistant. It's just like ChatGPT for investors, but with access to 10 years of company data, a built-in screener, Wall Street analysts' reports, and earnings call transcripts for real-time, vetted insights. Even if you end up going with your gut feeling, at least you'll know why.

Investing.com -- RBC Capital Markets has updated its ratings and price targets for several U.K. housebuilders, citing revised RBC Elements home-fi data and changes to valuation assumptions. Taylor Wimpey (LON:TW) was downgraded, while Berkeley Group (OTC:BKGFY) and Persimmon (LON:PSN) received upgrades based on divergent fundamentals and market positioning. Taylor Wimpey was downgraded to “sector perform” from “outperform,” with its price target cut from 150p to 135p. RBC’s proprietary home-fi data revealed a persistent decline in site numbers and stock levels, prompting downward revisions to site count estimates - FY2026 was lowered from 245 to 235, FY2027 from 265 to 245, and FY2028 from 280 to 270. The valuation multiple was adjusted from 1.30x to 1.10x to reflect slower expected growth. While RBC acknowledged Taylor Wimpey’s land bank and infrastructure as long-term strengths capable of supporting higher volumes and margins, near-term challenges such as planning delays were flagged as headwinds. In contrast, Berkeley Group was upgraded to “outperform” from “underperform,” with its price target raised to 4,900p from 4,550p. The upgrade followed a period of share price weakness and reflected RBC’s confidence in Berkeley’s ability to sustain premium valuations in softer markets. The P/B multiple was raised from 1.4x to 1.5x. RBC highlighted the company’s focus on large, long-duration sites, which enhance earnings visibility, and its distinctive model that emphasizes upfront deposits of 10% or more and avoids bulk sales. Berkeley’s strategy to grow its own build-to-rent platform was also cited as a strength. Profit before tax guidance of £450 million for FY2026 remains unchanged, with similar expectations for FY2027. Shares were trading at 3,622p. Persimmon was upgraded to “sector perform” from “underperform,” with a price target increase to 1,375p from 1,325p. RBC Elements data showed progress in opening new sites and maintaining healthy stock levels. The P/B multiple was adjusted slightly from 1.20x to 1.25x. RBC underscored the importance of site count for volume growth, noting Persimmon’s long-term average private sales rate of 0.65 homes per site per week, a level historically supporting 20% operating margins. Although margin growth may remain constrained by previously acquired land during flat pricing periods, the company’s operational momentum is viewed positively. Persimmon shares were trading at 1,208p, on a CY2025e P/B of 1.12x and a dividend yield of 5%, both above sector norms. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago. Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year. ProPicks AI offers 6 model portfolios from Investing.com which identify the best stocks for investors to buy right now. For example, ProPicks AI found 9 overlooked stocks that jumped over 25% this year alone. The new stocks that made the monthly cut could yield enormous returns in the coming years. Is PSN one of them?

Halifax on Friday reported a minor drop of 0.4%, or about £1,133, in house prices, following a 0.3% rise in April. On the other hand, Nationwide on Monday reported a 0.5% increase in house prices. These contrasting figures suggest that the market is broadly stable, with the average U.K. house price now standing at £296,648, down from £297,781 in April. The annual U.K. house price inflation is at 2.5%, a slight decrease from 3.2% in April. So far in 2025, house prices have dropped by an average of £531. RBC analysts suggest that stable house prices are beneficial for both homebuyers and current homeowners. The stability helps prevent prices from becoming unaffordable while maintaining the wealth of those already on the housing ladder. This environment may encourage more potential buyers to enter the market, particularly with the prospect of falling mortgage rates. Gleeson, a builder focused on affordable homes, noted earlier this week that it has struggled to increase house prices. Despite this, Gleeson highlighted stubbornly high incentive levels, which RBC found surprising given the affordability of its homes. Rising wages and declining mortgage rates are expected to improve affordability for lower-income households. RBC believes that stable house prices are generally favorable for housebuilders, as they are typically price takers in the market. With the current market conditions, housebuilders should also experience stable pricing.

LONDON (Reuters) - One of Japan’s largest property developers has struck a deal with Legal & General (LON:LGEN) to build more than 1,000 homes in Britain’s rental housing market, where demand for properties far exceeds supply. It’s Nomura Real Estate’s first foray into the UK rental home market, which has seen increasing foreign interest in recent years, with U.S. firms Blackstone (NYSE:BX) and PGIM among those that have been pouring in cash. Britain’s rental market offers the prospect of long-term returns and institutional investment is playing catch-up compared to markets like Germany and the United States where bigger landlords are more common. The partnership has acquired its first site in south London to build more than 200 homes, with the remainder of the 1,000-plus homes to be delivered across other sites over five years, an executive at L&G told Reuters. "This is a significantly under-supplied market," said Bill Hughes, global head of private markets at L&G. "We expect we’ll learn things from Nomura due to their experience," he added, citing its focus on design efficiency and developing at scale in Japan. Nomura Real Estate, which is backed by Japanese banking giant Nomura, will invest hundreds of millions of pounds initially in the venture, providing most of the capital, with the British firm providing the remainder, an L&G spokesperson said, declining to give further details. The partnership will initially target sites in central London, focusing on brownfield and underutilised land, L&G said, with the homes to be developed and operated by the British firm. The deal deepens L&G’s ties to Japan, after it separately struck a unit sale and U.S. insurance tie-up with Meiji Yasuda last month. L&G has also previously worked with Mitsubishi Estate (OTC:MITEY) on several UK property projects. L&G wants to expand its rental homes business, and has 23 complete or under development schemes across 15 UK cities. Last year it sold UK housebuilder arm CALA, which specialises in building homes for sale.

UK homeowners see yearly price gains, with average home values hitting £308,782. London bucks the trend with a 0.5% fall. Discover regional insights.

Rental demand hits six-year low as rising supply puts downward pressure on rents - Breaking news for estate agents and the residential property industry. Independent, unbiased, and factual reporting. A forum for discussion and debate of topics of the day. Subscribe for our free daily newsletter.

What does the Autumn Budget mean for homeowners and renters in the UK? We break down the changes to buying a house, selling a house, landlords, and property tax changes.

The south west seems most affected – Major rent falls of up to 24% as market slumps

Post 1 of 2 on the Middle Eastern Conflict and Potential Impacts on the UK economy and on Construction (link to post 2 in the comments): It is still early days, and the financial markets and commodit...