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 UK Government has confirmed the change will be part of the upcoming Future Homes Standard, to be published this autumn. Propertymark supports efforts to reduce household energy costs and improve energy efficiency in new homes but has urged Ministers to address practical implementation challenges and ensure support is in place for the UK’s 29 million existing homes.

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a legal right to renew their leases in many circumstances — a framework that has faced growing criticism for being outdated and overly complex.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.

The first quarter of 2025 delivered a strong performance for the UK auction sector. Despite a backdrop of global economic uncertainty and pending Stamp Duty Land Tax (SDLT) changes, activity across England and Northern Ireland accelerated, driven by motivated buyers and sellers.

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 Energy Security and Next Zero Committee (ESNZC) has published its first inquiry report on retrofitting homes, concluding that at the present rate of progress, the UK is far off track for meeting its legally binding commitment to reach net zero by 2050. Around 29 million homes require upgrades, but support schemes are too complicated, short-term, and are failing to engage consumers and the supply chain.

Throughout 2024, Propertymark continued to strengthen its role as the UK’s leading professional body for property agents. This year has been a landmark period of strategic investment, advocacy and enhanced member support, ensuring we remain at the forefront of a rapidly evolving industry.

A fragmented and inconsistent approach to enforcement in the private rented sector (PRS) is letting residents down and highlighting the crucial role of responsible lettings agents in providing accurate advice and ensuring properties are safe and compliant. Research commissioned by the TDS Charitable Foundation concludes poor coordination between local authorities and other bodies allows rogue operators to slip through the net, leaving tenants vulnerable.

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.

Backed by £17 million in UK Government funding, the strategy will refurbish empty homes, expand support hubs and offer help before people are forced onto the streets. Propertymark supports a shift from crisis response to early intervention. We campaign for local authorities to prioritise a housing-led approach and increasing engagement with our members, who are well placed to help identify at-risk tenants and support local efforts to improve access to the private rented sector (PRS).

The Energy Performance Certificate (EPC) system will see the introduction of RdSAP 10 – an update to the methodology that underpins domestic energy assessments in existing homes. The changes are the most significant in over a decade and are expected to improve the accuracy of EPCs, better reflect how homes are used, and help inform decisions on energy efficiency. Nevertheless, some Propertymark members have already reported increased costs for the more detailed assessments.

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.

The modern rental property is working harder than ever, with millions of people adopting remote or hybrid work patterns in the last five years and spending more time at home. This increased usage isn’t unreasonable: it’s reality. But under current rules, tenants are being penalised for “damage” that’s normal use, whilst landlords are absorbing more frequent replacement costs. Propertymark emphasises the importance of understanding fair wear and tear and applying it appropriately to avoid misunderstanding, confusion, and disputes.