Mortgage broker and client.

Measuring the performance of the UK property market in recent years is a difficult task. 

The media often paints conflicting pictures of the state of the market. Some suggest dramatic downturns, others point to resilient growth. The reality, as is often the case, lies somewhere in between.

Take the buy-to-let (BTL) sector, for example. Regulatory changes and increased taxation have sparked widespread talk of its 'death'. Yet, rental prices continue to rise, and Q1 rental yields 7.4% – hardly the signs of a market in retreat.

Similarly, while rising interest rates have undoubtedly slowed property price growth, this doesn’t necessarily indicate weakness. Instead, it reflects a market that has adapted in response to a shifting economic landscape.                                                                                   

At RAW Capital Partners, we’re seeing a property sector that isn’t faltering but evolving. In this blog, we’ll explore the underlying dynamics and explain how we can help brokers and investors capitalise on the opportunities that today’s market is presenting.

Price fluctuations signal a shift – not a decline

Top-line property data often makes for eye-catching headlines, but it rarely captures the full picture. In a market as diverse and dynamic as the UK’s, broad averages can be somewhat misleading.

In Prime Central London, for example, recent ONS figures suggest that prices are falling in areas like Kensington & Chelsea. But this isn’t necessarily about individual property values falling, but rather a shift in buyer activity

This part of London has long been known for its older, more characterful, and highly desirable homes. Admittedly, due to rising interest rates, these properties have not been selling to the same extent. 

But that doesn’t mean that the market has slowed down entirely. Instead, there has been a shift in the type of property being bought and sold. There’s been steady turnover at the more modest end of the market – namely, flats and apartments.

Indeed, figures from Q1 showed that transaction volumes for PCL properties valued under £2 million had outperformed the five-year Q1 average by 11%. Meanwhile, according to Halifax data from last year, prices for smaller homes were increasing at a faster rate than larger properties. 

The result? Lower average prices – not because values or activity levels are dropping, but because more activity is occurring in the lower echelons of the market. In short, it’s a statistical distortion, rather than a full market downturn.

Now, obviously this isn't indicative of the UK market as a whole. But it does demonstrate that context matters.

Buyers are opting for simplicity

On the topic of context, interest rates and affordability are key factors that explain the trend detailed above.

When rates were low, investors could comfortably borrow against higher-value properties, often adding premium assets to their portfolios with relatively limited capital. Now, with the base rate at 4.25% (at the time of writing), borrowing is more expensive – but that hasn’t diminished investor appetite.

Instead, RAW’s BDMs report that investors are taking a more strategic approach. Buyers are targeting high quality, lower maintenance properties in strong, but potentially non-traditional, urban locations – specifically, assets that offer strong fundamentals like capital growth and rental yield, but with greater efficiency and faster time to income.

Due to their fundamentals, many of these investments still require significant leverage – especially among international buyers seeking to maximise how they deploy their capital – but simplicity and performance are the new priorities. As a result, we’re seeing strong demand for modern, turnkey properties, which are easier to manage remotely and can be rented out immediately, offering a faster route to income.

However, as the demand for these assets rises, financing these investments calls for speed, flexibility and higher leverage – particularly for investors looking to capitalise on the perceived market ‘slowdown’ and add a number of properties to their portfolios.

RAW Capital Partners is meeting the unique needs of individual investors

With this in mind, accessing bespoke finance solutions is even more important for landlords and brokers – fortunately, RAW Capital Partners can provide them.

For over a decade, we’ve supported landlords, expats, and international investors with tailored lending solutions designed around simplicity, speed, and flexibility. We offer decisions in principle within one business day of enquiry, with no stress testing — enabling clients to act quickly when opportunities arise.

Until now, this service has been offered at a maximum of 55% LTV. But from 1 July, we’ve increased that to 70%, giving brokers and investors greater borrowing power while maintaining the responsiveness and adaptability we’re known for.

In a market defined by increasing selectivity, access to fast, flexible lending can be the difference between securing a smart investment – or missing out.

Looking to support your clients more effectively in today’s market? Get in touch with the RAW Mortgages team to see how our flexible lending solutions – now available up to 70% LTV – can help you place more cases with speed and certainty: https://rawcapitalpartners.com/