A Year in Review: Key Events that Defined the Property Market in 2025

This year has been one for the books. The property market has had to adapt to many economic and political shifts, and we’ve seen first hand how brokers and borrowers have been affected.

A few obvious headlines will come to mind when people think about 2025’s key property events and news items. We’ve rounded them up here, sharing a bit of insight on how the market has reacted, and what the overall impact has been.

While we expect our choices below to be largely agreed with, we must stress that it’s subjective. There are simply too many highlights to cover here, and there are bound to be some key events our brokers feel should have been included here. Those points we miss though; our BDMs and underwriters will be happy to discuss at length as we move into 2026.

The Autumn Budget

Let’s start with the most recent update – the Autumn Budget. Of course, it covered a lot, but there were a few property-specific updates unveiled.

A “mansion tax” was announced for properties worth over £2m, while income tax rates on property income will be hiked from April 2027[1].

As to be expected, the news was met with disappointment across the industry[2]. But at least we all know where we stand, and we can react accordingly. The ramifications of the Budget will likely present themselves in 2026 and beyond, and we’ll all need to be ready for this.

The Renters’ Rights Act Finally Arrives

Arguably, no single thing effected landlords more than the Renters’ Rights Act this year. This controversial piece of legislation has hovered over the BTL market since it was first announced in mid-2024. As more details emerged, many property investors feared the worst, and we saw a mass selling off as a result[3].

Still, recent months have brought clarity, at least. After bouncing back and forth between the Commons and the House of Lords, the Renters Rights Act finally received Royal Assent in October, and officially became law[4]. Not too long after this, the government confirmed the first set of changes under the Act will come into force on 1 May, 2026[5].

For better or worse, BTL investors at least now have official timeframes to work with. We expect plenty of activity in the market in the lead up to the spring and we’re ready for that.

Opening up our planning system

Another piece of legislation which doesn’t seem to generate as much coverage but probably should is the Planning and Infrastructure Bill. Introduced in March, with guidance issued in September[6], it’s set to open up the planning system, speed up the process, and allow the government to hit its 1.5 million homes target.

The reforms proposed have been welcomed by some[7], and criticised by others[8]. We’ll soon understand fully just how impactful this Bill will be and if it will deliver, given that we’re reaching the final stages before it receives Royal Assent[9].

If it does lead to an increase in new-build developments, the powers that be will need to move very quickly to play catch up. We’re nowhere near on track to hit that 1.5 million target. The state’s own statistics show that the annual housing supply in England amounted to 208,600 net additional dwellings in 2024/25 – a 6% decrease on 2023/24[10].

Stamp Duty Changes – Again

Stamp duty is one of the main levies that impacts the property market, and we hit a major milestone with it this year. As stamp duty rates changed on 1 April 2025, the temporary increases to the thresholds that were put in place in September 2022 came to an end[11].

Property investors and buyers adapted to this both in the run up to April, and immediately afterwards. Mortgage lending surged in the first quarter of 2025, which was driven by homebuyers wanting to complete their purchases before the changes came into effect[12]. Then, property transactions plummeted in April[13].

As we progressed through the year, many called for stamp duty be reformed or abolished entirely but as we now know[14], no changes were made in the Budget. Buyers will need to consider the tax for some time yet.

The Specialist Finance Market Has a Great Year

Regardless of everything else that happened in 2025, the specialist market had a fantastic year! In Q1[15], new bridging loan completions totalled £2.8 billion, and new applications surged to £18.34 billion, a 55.3% increase on the previous quarter. More recently, the total value of lender loan books climbed for a third consecutive quarter in Q3, reaching a record £13.7 billion[16].

Landlords specifically have turned to specialist finance for support this year. One in 10 landlords now hold a specialist BTL product, and this is set to increase to one in seven within the next 12 months[17]. Looking at the wider picture, BTL firms became the single biggest business type in the UK this year, with over 400,000 companies registered. Many of these firms would have been in need of bespoke limited company finance options.

This year wasn’t without its challenges but evidently, property investors are turning to specialist financed in record numbers to find solutions for those challenges. As we face down everything that 2026 will bring to the table, all signs point to it being another busy year for the bespoke lending market.