The Propertymark Commercial Outlook Q1 2025 reveals a resilient commercial property sector navigating economic uncertainty with cautious optimism. While inflation remains above target and lending challenges persist, strong confidence continues in the Industrial and Class E sectors.

The Act, now over 70 years old, gives business tenants a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex. Propertymark responded to the consultation, advocating for modernisation of the legislation to reflect the current needs of businesses. These initial recommendations come as part of a wider review focusing on how well the law is functioning for commercial property leases.

Chancellor Rachel Reeves, MP, delivered her first Spending Review on 11 June 2025, setting out the UK Government’s financial plans through to 2029. With major implications for the housing sector, the review includes a headline investment in social and affordable housing – the biggest such commitment in 50 years. Propertymark welcomes this clear signal that housing is a top priority. We also recognise the importance of scrutinising how this investment will be delivered in practice and what it means for agents across the property sector.

2024 was a year defined by strategic investment, enhanced member support, and strong financial performance. Despite a challenging economic landscape, we held membership fees and Client Money Protection levies at 2022 levels for a third consecutive year, while growing membership by 4.3% to 18,711.

The funding, delivered through the Land Division, will support 17 projects aimed at addressing housing need and creating stronger communities. Propertymark has consistently called for greater collaboration between devolved governments and the private sector to support housing delivery. This latest announcement reflects similar calls raised in our reports on planning reform and housing supply.

The global venture arm of the National Association of Realtors has selected eight high-growth start-ups for its 2025 REACH UK scale-up programme. Tackling critical challenges across the property sector - from late rent and retrofit finance to water use, waste and leasing inefficiencies, the companies represent the next wave of innovation set to modernise housing, lettings, finance, and sustainability. Delivered in collaboration with Propertymark and TDS Group, the programme provides a tailored pathway to growth through industry access, investment, and targeted support.

The UK Government has unveiled a major plan to get Britain building by backing small and medium-sized housebuilders with funding, regulatory reform, and new guidance aimed at speeding up completions. Keeping pace with housing demand remains an incredibly challenging ambition to achieve, and it is vital that reforms identify areas of potential housing need and deliver a streamlined process that supports the provision of sustainable housing.

Inadequate or insufficient insurance cover may result in serious financial loss and can affect organisations of any size. Underinsurance can have potentially serious consequences for a business when they make a claim. Gallagher, Propertymark’s official insurance broking partner, explains the potential impact underinsurance can have.

It may not have been bright, but it was certainly early as teams of spirited property professionals gathered at Fairlop Waters on Sunday 18 May for the third annual Agents Giving Dragon Boat Race. Among the 10 teams competing, two flew the Propertymark flag: the Propertymark Green Dragons and the Propertymark Trust. Each boat was crewed by a mix of staff, volunteers, member agents, and supportive friends and family.

Propertymark’s response to the Ministry for Housing, Communities and Local Government (MHCLG) consultation on reforms to the Energy Performance of Buildings (EPB) regime addresses the wide-ranging proposals, covering changes to Energy Performance Certificates (EPCs), Display Energy Certificates (DECs), and Air Conditioning Inspection Reports (ACIRs). We welcome many of the proposed reforms but have also raised concerns, especially around commercial and heritage buildings and HMOs, and made recommendations to ensure the final policy is fair, practical, and effective.

Jayne Bryant MS, Cabinet Secretary for Housing and Local Government announced that the survey will be undertaken in 2026–27, marking a major step forward in improving housing policy. This is a great campaign win for Propertymark – we have been calling for this for some time, including in evidence to the Senedd’s Local Government and Housing Committee, where we made it clear that without up-to-date and reliable information, ministers can’t make informed decisions that truly reflect what’s happening across Wales.

The property sector has seen a significant regulatory shift with the quiet withdrawal of the National Trading Standards Estate and Letting Agency Team (NTSELAT) Material Information Guidance. This change coincides with the enforcement of the Digital Markets, Competition and Consumers Act (DMCC Act) on 6 April 2025 which supersedes the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and has shifted power over consumer protections to the Competition and Markets Authority (CMA).

The Scottish Government has set out detailed plans to tackle Scotland’s ongoing housing challenges in its Programme for Government 2025-26, with significant implications for property agents across the country. Propertymark welcomes the renewed focus on affordable housing and tenant protections, issues we have consistently highlighted through our policy engagement, particularly with regard to the Housing (Scotland) Bill. However, we reiterate our stance that truly resolving Scotland’s housing crisis requires the Scottish Government to urgently reassess the broader financial landscape affecting housing.

From January 2026, Ofgem will take on regulatory responsibility for heat networks in England, Scotland and Wales, with a remit to protect consumers, support investment in the sector, and help the UK Government achieve its net zero targets. Significant growth in the use of heat networks is being driven by government policy and funding, making it crucial that managing agents, estate and letting agents, and auctioneers are part of the conversation.