Navigating the UK Property Market in 2025: Implications for Sales and Lettings Recruitment
- sarahnicholas1975
- Apr 16
- 4 min read
This month we’re focussing on the shifting sands of the UK property market. In April 2025 alone, we’ve had the Renters Rights Bill, Stamp Duty and Furnished Holiday Lettings Tax changes, and ongoing market fluctuations that are affecting interest rates and mortgages.
The UK property market is a complicated landscape, shaped by economic shifts, regulatory changes, and evolving consumer behaviours. Both the sales and lettings sectors will be feeling the effects, with significant knock-on effects for recruitment within the property industry.

Sales Sector: April 2025
This month has presented a mixed bag of challenges and opportunities. House prices are rising, but the market is also seeing a surge in new construction. Interest rate cuts are expected to impact mortgage rates and potentially drive prices up further.
The market is also seeing increased activity in the luxury property sector, with large-scale transactions of £5 million and above significantly increasing.
Some stats to consider around rising house prices:
Average UK house prices have increased by 4.9% in the year to January 2025.
The Office for Budget Responsibility (OBR) forecasts steady house price growth until 2030, with average house prices in 2028 expected to reach £310,000.
Some sources suggest that property prices could rise by 17% in the next decade, reaching £400,000 by 2050.
But all this growth is counterbalanced by the challenges faced by the sector – the UK’s housing shortage is increasingly problematic, and many of the remaining private landlords are turning their attention to houses in multiple occupation to meet the demand for student accommodation.
Lettings Sector: April 2025
This month the lettings market has seen significant changes, primarily driven by the Renters' Rights Bill and the abolition of the Furnished Holiday Lettings (FHL) tax.
The Bill aims to reform the private rented sector by introducing a single system of periodic tenancies, eliminating fixed-term contracts, and limiting rent increases. Simultaneously, the FHL regime will be replaced with the same tax treatment as other residential property, impacting income tax and capital gains tax.
Stamp Duty Land Tax (SDLT) for buy-to-let properties and second homes in England and Northern Ireland has also reverted to pre-September 2022 levels, increasing the upfront costs for landlords and investors. Prices are increasing for renters too, with “affordable” rents increasing by 2.7% and intermediate market rents rising by 3.2%.

Adapting to Market Fluctuations
While house prices are increasing steadily, momentum in sales has been lost due to the expiration of some tax reliefs and due to general economic uncertainty. The ongoing Russian conflict with Ukraine and the sweeping import tax changes coming from the white house have people playing it very safe.
The surge in transactions in March this year (prompted by the conclusion of the stamp duty holiday) means that projections for many agencies are looking slim for the next quarter. Effectively, many will have front-loaded and won’t be able to rely on their first quarter figures to continue through the year.
For the lettings sector, the ongoing challenge of balancing supply with demand will continue. There’s still an average of 12 potential tenants vying for each property, but many will not be able to evidence their suitability for the rental prices on offer. Record-high rents will continue to climb, with the London average reaching £2,698 per month, and the outside of London rate reaching £1,349 per month.
Recruitment Implications
For the sales industry, we expect to see the following:
A demand for experienced negotiators: With a more competitive market, agencies are seeking sales professionals adept at navigating complex transactions and maintaining client relationships.
An emphasis on digital proficiency: The integration of PropTech solutions requires sales staff to be comfortable with digital tools that enhance client engagement and streamline processes.
Regional focus: Agencies are looking to recruit locally knowledgeable professionals to capitalise on their specific markets.
On the lettings side of the fence, we expect to see:
A need for skilled lettings agents: Agencies are prioritising candidates with strong negotiation skills and the ability to manage high-volume enquiries efficiently.
Compliance expertise: With evolving regulations, including proposed rent controls and energy efficiency standards, there is a growing demand for professionals well-versed in legal compliance.
Customer service orientation: The competitive rental landscape requires lettings staff who can provide exceptional service to both tenants and landlords, fostering long-term relationships.

Strategies for Recruitment Success in 2025
Aside from the obvious (working with a seasoned recruiter who understands the current market and your needs), we suggest a focus in the following areas:
Invest in training:
Providing ongoing professional development ensures staff stay informed about industry changes and technological advancements.
Enhance employer branding:
Positive workplace culture comes top of the list for many candidates, alongside clear career progression pathways. Invest here to attract top talent.
Leverage recruitment technology:
Utilising advanced recruitment platforms can streamline the hiring process and identify candidates with the desired skill sets efficiently.
In summary, the UK property market is a dynamic environment facing distinct challenges and opportunities in both sales and lettings. Agencies that proactively adapt their recruitment strategies to these evolving conditions will be well-positioned to attract and retain the talent necessary for sustained success.