As we approach the end of 2025, the UK property market continues to show signs of resilience and cautious optimism. While challenges persist, several key developments are shaping the landscape for buyers, sellers, and investors across the country, including in areas such as Nottinghamshire, Leicestershire, and Staffordshire.
Mortgage Rates and Buyer Sentiment
Mortgage rates remain a central factor influencing market activity. The Bank of England’s decision to maintain the base rate at 4.0% has provided some stability, and buyer confidence has improved slightly as a result. Experts anticipate little change until late 2026.
In some markets like West Bridgford and Ashby, demand has remained steady, particularly for family homes, especially properties near good schools. In Tamworth, affordability continues to attract first-time buyers seeking value within commuting distance of Birmingham.
House Price Trends
Nationally, house prices have shown modest growth. The average property value in the UK increased by 0.5% month on month in September, reaching approximately £271,995. Analysts project a 2% - 4% rise in prices by the end of the year, depending on inflation control and employment stability.
Prices in Nottinghamshire and Leicestershire have tracked close to the national average, with the East Midlands as a whole seeing steady annual growth of around 3% - 4%. Areas such as West Bridgford and Keyworth remain particularly popular due to strong amenities and transport links, while Tamworth continues to offer excellent value for money compared with neighbouring regions.
City to City
Cities like Birmingham and Manchester are experiencing significant growth, with projected price increases of 22.2% and 24%, respectively, over the next five years.
Meanwhile, within the East Midlands, smaller towns such as Ashby and Ruddington are benefiting from those seeking more space while remaining close to major city centres. Conversely, some prime London boroughs, including Kensington & Chelsea, have seen declines, highlighting the importance of location in property value trends.
Buy-to-Let Market Shifts
The buy-to-let sector is undergoing a generational shift. Millennials now account for 50% of new buy-to-let investors in England and Wales, a significant increase from previous years
Many are turning their attention to the Midlands and the North, where property prices are more accessible, and yields are stronger. Locations such as Tamworth and Loughborough have become appealing for investors seeking good rental demand without London level entry costs.
Policy and Economic Considerations
Looking ahead, the upcoming Autumn Budget on 24th November 2025, is expected to include reforms that could influence the property market. Proposals under review include adjustments to business rates and potential tax changes that could impact landlords and investors.
For homeowners and investors in Nottinghamshire, Leicestershire, and Staffordshire, staying informed on these developments will be key to making smart, timely decisions.
