Welcome to State of the Market, our monthly round-up of key property market updates, with actionable insights for small and medium-sized property developers.
Key takeaways – at a glance:
- UK house prices hold steady – still +2.5% year-on-year
- Bank of England holds base rate at 4.25% – markets anticipate summer cut
- Building material supply up – despite lingering price uncertainty
- SME housing reforms: £100m in loans and faster planning for <10 units
- 3D-printed housing makes its debut in the UK
Key takeaway 1: UK house prices hold steady – still +2.5% year-on-year
According to the Halifax House Price Index, UK house prices edged down 0.4% in May, bringing the average to £296,648. Despite this small slip, prices have been fairly stable since January, with year-on-year growth holding at a healthy +2.5%.
“This continues a recent run of relative stability in house prices and reflects a market that has been more balanced between buyers and sellers so far this year,” said Amanda Bryden, Head of Mortgages at Halifax.
Full report: https://www.halifax.co.uk/media-centre/house-price-index.html?os=win&ref=app
Analysts suggest that while affordability pressures remain, confidence is returning – particularly in regions where wages are growing ahead of inflation and in price bands aligned with first-time buyer activity.
What this means for SME developers:
The market is holding steady and may be nearing a demand-led tipping point. Developers should focus on efficient, realistically priced stock, with a particular emphasis on homes that meet local affordability criteria. Modest price appreciation and stable conditions may support dealmaking through the summer.
Key takeaway 2: Bank of England holds base rate at 4.25% – markets anticipate summer cut
As widely anticipated, the Monetary Policy Committee (MPC) meeting on 19 June, saw the Bank of England hold the base rate at 4.25%. While inflation has eased, volatile oil prices and a cooling labour market are keeping policy makers cautious.
“Markets still expect a cut by late summer,” notes Reuters, with some MPC members signalling a willingness to loosen policy further if data permits.
Reuters preview: https://www.reuters.com/sustainability/sustainable-finance-reporting/bank-england-keep-rates-steady-despite-slower-job-market-2025-06-13/
BoE MPC summary: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2025/june-2025
What this means for SME developers:
Although the base rate is unlikely to drop sharply, positivity is increasing. Developers should monitor interest rate signals closely and prepare for gradual improvements in buyer affordability. Work with lenders who offer clarity, speed, and certainty amid evolving conditions.
Key takeaway 3: Building material supply edges up – but pricing data still patchy
According to the May 2025 Building Materials and Components statistics, deliveries of cement and bricks increased last month – a positive sign for SME developers actively procuring for summer starts.
However, data gaps remain in key pricing indices, which complicates accurate cost planning. Volatility in fuel, steel, and aggregates continues to impact input assumptions.
Important to note, while availability of materials is improving, a lack of clear price benchmarks is making quantity surveying and financial planning more difficult than usual.
Full dataset: https://www.gov.uk/government/statistics/building-materials-and-components-statistics-may-2025
What this means for SME developers:
Developers should build-in flexibility in procurement and contingency in cost plans. Materials are more available than last year, but prices are inconsistent. Use supplier relationships to lock-in known rates and remain agile in project planning.
Key takeaway 4: Government backs SME builders with loans and faster planning
On 28 May, the Government announced new measures to support SME housebuilders, including:
- £100 million in Accelerator Loans to support early-stage costs
- Streamlined planning for sites of fewer than 10 units
- A reinforced commitment to making smaller sites viable and quicker to deliver
Announcement: https://www.gov.uk/government/news/government-backs-sme-builders-to-get-britain-building
“Backing SME housebuilders is critical to unlocking growth, increasing housing supply and boosting local jobs,” said Housing Minister Lee Rowley.
What this means for SME developers:
This policy package could significantly reduce barriers to entry, particularly for developers operating in regional or semi-rural locations. Look closely at the Accelerator Loan scheme and identify small-site opportunities that could benefit from faster decision-making.
Key takeaway 5: 3D-printed housing lands in the UK – cost and speed gains on the horizon
The UK’s first 3D-printed housing scheme has been completed in Ireland and is being trialled in the UK, offering a glimpse of faster, cheaper, and safer housebuilding. Using drone-enabled concrete printing, the method produces structural shells up to 30% cheaper than traditional builds, without the need for scaffolding.
Full article: https://www.rte.ie/news/ireland/2025/0206/1494975-3d-printed-houses/
The technology promises safer sites, faster build times, and significantly reduced labour demands – particularly appealing in a market still facing skills shortages. It could also aid developers building in tight or complex conditions.
What this means for SME developers:
3D-printing may not be ready for immediate adoption, but it is worth tracking as a future innovation – to save costs and increase efficiency. In the medium term, these technologies could help SMEs to deliver quicker, cheaper homes with fewer site risks.
And finally…
Here are five articles we think you’ll find valuable:
- UK builders gear up for post‑pandemic boom despite global gloom
- 27 firms win a slice of £2.6 bn NHS SBS Modular Buildings 3 framework
- How Off‑Site Building is Reshaping UK Development
- Starmer gets tough on housebuilders – but are they villains or scapegoats
- Get building or lose your land: Labour propose strict new demands for developers
Steve Deutsch, CEO of CrowdProperty, comments:
“June’s headlines point to a steadying market and the gradual return of buyer confidence. With policy now supporting SME developers more explicitly – from fast-tracked planning to innovation – there’s real momentum building in housebuilding. That said, viability remains under pressure. Developers must build shrewdly, factor in material price risks, and be prepared to move quickly when the right opportunities emerge.”
Together we build
Here at CrowdProperty, we work closely and productively with the developers we back – tackling market, site and situational challenges together in partnership.
Our team of property experts actively visit sites to discuss project progress and offer input on any barriers that may need to be overcome.
Learn more about our story and our team
We are a leading specialist property development finance business and have funded £894m worth of property projects to date.
With 300+ years of property expertise in the team, our distinct ‘property finance by property people’ proposition means we understand what developers are looking to achieve and help them succeed.
Apply in just five minutes at www.crowdproperty.com/apply and get an instant Decision in Principle. Within 30 minutes, our property experts will share their insights and initial funding terms, and go on to support the success of your project and help you grow your property business quicker.
Learn about some of the projects we’ve already provided with funding