The way that we invest in property changes over time, although some classic approaches never seem to lose their appeal. By considering the ways in which the UK property market is evolving, we can see how we might adapt to current challenges and our changing needs.
More First-Time Buyers Looking in the Cities
The first half of 2025 brought an influx of interest in moving to the country’s cities, with a 16% increase in the average number of first-time buyers looking to purchase an urban home. Dundee, on the East coast of Scotland, showed the biggest increase in interest out of the 50 cities in the study. It was followed by Edinburgh, then Doncaster and Liverpool.
While these numbers reveal that the trend of moving to the countryside appears to be over, a look at the appeal of Dundee may help us to understand what people are now looking for. While Scotland’s fourth-biggest city was once renowned for being at the centre of the global jute industry, it now has a thriving culture, with arts and lots of green spaces attracting people who want urban life with a difference.
This is part of a global trend, as people are apparently being attracted to big cities with lots of amenities and social opportunities. Like all trends, it’s subject to change depending on the latest economic data and lifestyle preferences. However, for the moment, it seems clear that cities are hugely appealing again.
Source: Pixabay
House Prices Are Falling
Property is generally regarded as being the safest type of long-term investment. If we look at the British market over the last five decades, the average UK house price has risen by a staggering 2.3x since 1975, adjusted for inflation, but no one wants to wait 50 years for a profit, which means that we tend to focus more on short-term trends when deciding whether to invest.
At the moment, the housing market is flooded, but with sellers rather than buyers. The latest figures, showing the May to June period, showed the steepest drop in house values for two years, with the average price falling by 0.8% to £271,619 in June, as shown by the current Nationwide house price index.
A variety of factors are to blame for this, with stamp duty changes being mentioned as one of the biggest reasons. If we look at the year overall, prices rose by 2.1%, which is the poorest growth rate in the last year. Because of this, direct sale methods which allow you to sell your house fast are becoming increasingly popular, as homeowners look to avoid the delays and frustration of waiting to find a buyer. These online services offer a speedier approach to getting a valuation and closing the deal, helping free up properties for sale and move the market along more smoothly.
The UK property market remains in good health, despite the recent fall in house prices. If you’re considering investing in the sector, it’s worth considering your preferences and whether staking your claim in the big city suits your style or not. There’s still room for every taste in this market.