After a volatile 2024, the UK property market is showing signs of recovery. According to a January 2025 update from specialist lender LendInvest, gross lending is forecast to rise to £260 billion in 2025—an 11 % increase on 2024. Lending for house purchases is expected to reach £148 billion, up 10 % year‑on‑year.
Remortgaging is also set to rebound; external remortgages are projected to surge by 30 % to £76 billion, reversing the 10 % fall seen in 2024. By contrast, buy‑to‑let purchase lending is forecast to decline 7 % to £9 billion because of additional stamp‑duty surcharges and tightening regulation. Mortgage arrears are expected to fall to 99 000 cases by the end of 2025, reflecting responsible lending and lower unemployment.
These figures suggest a cautiously optimistic market. Increased lending volumes signal improved confidence among borrowers, while falling arrears indicate that most homeowners are coping with higher interest rates. However, investors should be aware of regional differences: northern cities such as Liverpool and Manchester are enjoying stronger growth than many southern areas. Staying informed about market forecasts can help investors time purchases, refinance existing properties or seek specialist finance when opportunities arise.