Building resilience – How the commercial property market is finding a new approach to uncertainty
Andy Noton, 30 October 2025
Andy Noton, 30 October 2025
The turbulence of the past few years has left a lasting mark on UK commercial property, but the sector is proving adaptable. Higher interest rates, shifting investor confidence and greater uncertainty from politically driven change have all forced a reset for many investors and developers. However, it feels like we are turning a corner as the market stabilises and activity makes a steady return, with deals feeling more grounded than before.
We aren’t quite back to the ‘good old days’, as buyers remain selective but they are more engaged. Sellers are also becoming increasingly pragmatic, prioritising certainty over the speculation of the market.
Where property markets once swung between optimism and fear, the current environment seems to have become more measured. Investors and vendors alike are focusing on strategy, discipline and long-term value, rather than quick gains.
The revised valuations within the market are being more recognised by sellers and buyers seem to be more focused on income, growth potential and asset fundamentals.
Expectation and reality feel closer than before, thanks in part to recent institutional sales, which are providing a firmer base for pricing strategies. The result is a market grounded in today’s conditions rather than memories of pre-2022 highs.
For those who need speed and certainty, auctions continue to provide a reliable and transparent route.
One of the quieter but more powerful trends driving supply is the transfer of property wealth between generations.
Landlords who built their portfolios over decades are beginning to hand them down, often to heirs who are less attached to the assets and more open to selling at current market levels – in part to generate liquidity to account for their own reduced incomes outside of property.
Nowhere is this truer than probate-related disposals, which are releasing well-positioned stock at realistic prices.
As this generational shift gathers pace, it is set to inject more opportunities into the market for buyers, who may be able to take advantage of beneficiaries seeking quick sales.
Certainly, the changes to Business Relief and Agricultural Property Relief from April 2026 may be accelerating this trend in the short term.
Value is no longer dictated by location alone. For today’s buyers and sellers, a web of issues affect their transactions, such as lease length, tenant covenant strength, planning flexibility and income profile all matter.
Buyers need to enter the market with clarity of purpose. Whether the goal is steady long-term income or adding value through active management, success depends on having a defined strategy and recognising that the real gains are secured at acquisition.
The commercial property market is now influenced as much by broader economic and political developments as by local supply and demand. While the days of quick wins may be over, the market is far from stagnant.
If you would like guidance on your investment strategy and the impact on your wealth and tax position, get in touch with our Property Partner Andy Noton (andrewnoton@lubbockfine.co.uk).
