Following a softer second half of 2025 for house price growth, January has brought welcome signs of recovery. UK house prices increased by 2.5% in the 12 months to the end of November, indicating a return to more stable market conditions.
It is worth noting that while some headlines have reported UK house prices reaching £300,000 in January based on Halifax data, we continue to rely on Office for National Statistics figures. ONS data reflects completed property transactions and therefore provides a more accurate picture of market performance.
For investors, annual growth of around 2.5% is widely regarded as a healthy long-term benchmark for the UK housing market, making this recent uplift a positive development.
Encouragingly, Medway has outperformed the national average. Local property prices rose by 3.7% in the 12 months to November 2025. This is 1.2 percentage points higher than the UK average.
Average property values in Medway now stand at approximately £298,000, compared with the UK average of £271,000, according to ONS data.
The chart below highlights the strength of the Medway market relative to the national trend. After a weaker period at the end of 2024 and early 2025, which was largely due to a sharper post-COVID market correction, Medway house prices have rebounded strongly and continue to show impressive momentum.
A similar trend can be seen in the Medway rental market. Local rental growth has exceeded both the UK average increase of 4% and the South East average of 3.8% in the 12 months to December 2025. Over the same period, Medway rents rose by 6.7%.
The chart below illustrates how Medway rental values have consistently outperformed the UK average since 2016.
With strong growth in both property values and rental rates, it is worth considering why Medway continues to outperform the wider UK market.
This performance is largely driven by the area’s relative affordability compared to towns closer to London, combined with excellent transport links into the capital and strong connectivity across Kent.
In recent months, buyer demand has increased, placing further upward pressure on house prices. With some lenders beginning to relax lending criteria, such as Santander offering mortgages of up to 98%, there is potential for this momentum to continue throughout 2026.
For those considering expanding an existing portfolio or purchasing a first investment property, Medway remains a compelling option. If you would like further insight or guidance, we would be happy to assist and answer any questions you may have.
