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Although the Bank of England decided to hold interest rates in March, increases over recent months seem not to have deterred investors in the housing market. All UK house price indices are showing upward curves, with the average home in the UK now costing £188,623. This positive growth is continuing to drive investors into expanding their buy to let portfolios.
The market is driven by strong rental demand, spurred on by household break ups, growing student populations and increased immigration. Rising demand combined with growing costs for landlords is likely to result in increased rents over the coming months.
Philip Davies, Chief Executive of Linden Homes commented: “Rising prices above all else are continuing to attract investors, many of whom view their buy to let properties as their pension pots. Many are concerned only with covering their costs through rental income rather than making an immediate profit, in the knowledge that the property is gaining value which can be realised in the future.”