Hello and welcome to the latest update on my property business and the UK property market.
It’s been a while since I did one of these so please read on to see what I’ve been up to since the summer…
A photo from one of the properties I viewed in recent months. Thankfully, this one wasn’t tenanted!
If there’s one thing that’s consistent about this newsletter it’s that it’s inconsistent!
In all honesty, putting pen to paper has been on my to-do list for a while but I’ve struggled to prioritise it. I mentioned previously that we have been sending letters to landlords who might be looking to exit the market. The good news is that we’ve seen a good response rate throughout the autumn months. The bad news is that dealing with those responses has left me with little time to do much else! It’s quite a time-consuming process - having an initial chat to understand their position and expectations, viewing their properties, appraising the opportunity and negotiating to try and agree something both parties are happy with.
So far this year, we have sent over 2,000 letters direct to potential vendors. I’ve been pleased with the opportunities that’s generated and particularly pleased given the little amount of work I’ve had to do to generate them after the work we put in earlier this year to systemise the process.
From speaking to a lot of landlords one thing is clear - it’s never been a more difficult time to be one! Each year there is increased legislation and red tape, particularly after the introduction of the Renters Rights Act.
As a lawyer, I feel like I’m quite well placed to understand the legislation and what I need to do to manage tenants lawfully (or have my agents do it) but I have sympathy with some of the more experienced landlords I have spoken to. Some have been managing tenants for decades using only a notebook! That simply doesn’t work any longer and they can find themselves in great difficulty if they bring in the wrong tenant.
I’ve had personal experience of a tenant gaming the system and it’s frustrating that people can get away with not paying all of their rent without the landlord being able to evict them. Anyway, that’s a rant for another day!
A sneak peak at one of the properties I agreed to purchase - with a projector set up that would excite any tech geek!
Since the summer, I’ve had three offers accepted on new projects - a bungalow in Southport, a portfolio of properties in Bootle, and a block of flats on the Wirral.
I’ll provide more detail on each of them in future months once they have worked their way through legals but I’m excited to have a healthy pipeline set up as I look to 2027.
I’ve agreed to source the block of flats on to another investor as I’ve got enough on my plate for the time being. That will be a great addition to their portfolio and I’m hoping to work with the landlord further to help him cash in on his properties.
Unfortunately, the project I agreed in the summer fell through shortly after my last update. They were after a quick sale which I was initially happy to agree. However, as time went on it became clear they had unrealistic expectations of how quick the process could conclude and they wanted to increase the price we had agreed so I had to pull out. Perhaps they would have better luck in auction.
That was a real shame as it would have been a great project for me, being just round the corner from our home. That said, it was a timely reminder not to get emotionally attached to a project. If it doesn’t stack financially I won’t proceed, regardless of whether I would like to do the project. It’s a business after all!
I’ve also been exploring selling one of my properties. It’s not a good time to sell a property on the open market (as I’ll explain below) but there looks to be a really good opportunity to sell this one to an investment fund. Again, I’ll explain that further in the coming months if it progresses.
A few of Rightmove’s latest statistics.
Turning to the housing market, The latest Rightmove House Price Index suggests that buyers are in the driving seat as higher borrowing costs continue to affect demand.
Here’s a few statistics:
The average UK asking price is now £371,015. That’s up 1% in October but 0.1% below last year.
Sales agreed are 8% lower than the same period in 2025.
Property availability remains high, increasing competition between sellers.
In the North West, asking prices are still 2% higher than a year ago, although they fell 0.6% in October.
With the traditional winter slowdown approaching, further asking-price reductions are possible as sellers compete to attract buyers.
For property investors who are looking to buy (Hello!) this should create opportunities to acquire properties at more attractive prices, particularly where vendors are motivated to sell.
Meanwhile, average two-year fixed residential mortgage rates reached approximately 5.55%, placing further pressure on buyer affordability.
The Bank of England’s base rate currently stands at 3.75% but it’s looking likely this will hit 4% before Father Christmas visits, based on predicted economic conditions.
The Government’s Budget, announced earlier this week, included several measures relevant to the property market:
A new £4.7 billion ‘Your First Home’ scheme will offer eligible purchasers government equity loans of up to 20%, with deposits starting at 2.5%. The scheme is scheduled to begin issuing loans in April 2027 and could help stimulate activity at the lower end of the housing market.
From April 2027, the rateable value threshold for 100% Small Business Rate Relief will increase from £12,000 to £18,000 for qualifying retail, hospitality and leisure properties in England. This could benefit some commercial property owners and occupiers.
Regional mayors and local authorities will gain additional financial powers, potentially supporting regeneration and development opportunities, including across the Liverpool City Region.
Ultimately, higher borrowing costs are creating challenges for property owners and investors. However, the current market may also present opportunities for well-prepared investors.
Sellers face greater competition, buyers are becoming more selective, and properties priced unrealistically may struggle to sell. Spend five minutes on Rightmove and you will see a lot of reductions - and that will only increase as we work our way through a typically quiet part of the year for house sales.
That’s all from me for now. I’ll be back soon with more but please do follow me on Instagram if you want more regular updates.
Thanks so much for reading!
John