20 May UK Economic Outlook 2025: What It Means for Landowners
UK Economic Outlook in 2025
The start of 2025 brought a welcome update. The UK economy is now forecast to grow by 1.0 percent this year. That might sound like a small number, but in economic terms, it shows things are starting to move in the right direction again. For landowners and those interested in strategic development, this shift matters. It signals new opportunities, renewed confidence and a more stable ground to plan on.
Let’s break down what this growth actually means, why it’s happening and how it links back to property development in areas like the South West.
What’s happening with the UK economy right now?
The latest forecasts from economists have bumped up the UK’s growth expectations. Originally sitting at 0.9 percent, it’s now been nudged up to 1.0 percent. This is mostly down to a stronger-than-expected first quarter and some extra government spending in key areas.
At the same time, confidence is growing. People and businesses are feeling slightly more optimistic about the future. That improved sentiment can help trigger new investment, movement in the property market and stronger demand for housing and infrastructure.
Why landowners should be paying attention
A rising economy often goes hand-in-hand with rising land values. When confidence returns, buyers start looking again. Developers start building. Planning activity picks up. For landowners sitting on underused plots or brownfield sites, 2025 might be a turning point.
Timing is everything. Acting early in a recovering market can make a big difference. Whether you’re thinking about selling land, securing planning permission or forming a partnership with a developer, a stronger economy gives you more options.
What strategic development looks like in 2025
Strategic development is all about taking a long-term view. It’s not just about building now, but about shaping spaces that will thrive well into the future. With economic growth slowly returning and sustainability staying high on the agenda, developers are looking for sites where they can deliver high-quality, future-ready homes.
At William Abbott Group, we work with landowners across the South West to unlock value in a way that benefits both the individual and the wider community. That means smart planning, careful design and a big focus on environmental responsibility.
Opportunities beyond the headline figures
While national growth figures give a helpful overview, the real insight comes from understanding what’s happening locally. Some towns and rural areas are showing signs of faster growth than others. That’s where the opportunity lies.
We focus on identifying those early signals. Infrastructure improvements. Shifting demographics. Local investment. All these things matter when choosing the right location for development. The goal is always to build homes that work now and continue adding value for years to come.
Where this leaves you
If you own land and have been wondering when the right time might be to take the next step, 2025 could be it. With the economy on a slow but steady path to recovery, the environment is getting better for planning, partnerships and purposeful development.
The earlier you start exploring your options, the more flexibility you’ll have. That might mean speaking to a planning consultant, starting conversations with trusted developers or simply taking a fresh look at what your land could become.
FAQs about the UK Economic Outlook
What does the UK economic outlook look like for 2025?
The UK is expected to grow by 1.0 percent in 2025. That’s a modest improvement, but it’s the best pace of growth since before the pandemic. It reflects stronger performance in early 2025 and more public investment.
Why is the UK economy growing in 2025?
Several factors are helping boost the economy. These include increased government spending, better-than-expected business performance and a general improvement in consumer and investor confidence.
How does economic growth affect landowners?
When the economy grows, land tends to rise in value. There’s usually more interest from developers, and the planning system becomes more active. That can create a better environment for selling land, securing planning permission or starting new projects.
Is now a good time to develop land in the UK?
With confidence returning and the outlook improving, many experts believe now is a good time to start planning. Acting early can help landowners get ahead of rising competition and unlock better outcomes.
What areas are seeing the most property development?
Regions like the South West are showing strong potential, especially in areas close to good transport links and infrastructure. Local knowledge is key, and working with the right team can help you identify the right opportunities.
If you want to explore how your land fits into this economic picture, we’d be happy to chat. Get in touch with the team at William Abbott Group to take the next step.
Let’s plan what’s next. Together.