Weekly Market Brief: 19th - 25th July 2025

Each week, we provide you with the latest news that may impact the market and, consequently, your investments. Stay informed with Compare Wealth Managers.

UK Property Prices See Largest Drop in 20 Years

UK house prices fell 3.7% year-on-year in June, the sharpest annual drop since 2005, according to Rightmove via Reuters. Prices are now 6.4% below their 2022 peak, as high mortgage rates and tighter affordability continue to weigh on buyer sentiment.

💬 Investment Implications:

• Selective Opportunities in Prime Markets: HNWs may find value in areas where price corrections have overshot, particularly for long-term holds.
• Watch for a Policy Pivot: Speculation is rising over when the Bank of England will begin rate cuts. Lower borrowing costs could reawaken buyer interest and lift valuations.
• Income Overgrowth in Real Assets: In the interim, investors may favour income-generating property, REITs, and infrastructure plays with stable yields.

Supply Side Constraints Persist in the UK Economy

The UK continues to face deep-rooted supply-side issues, including labour shortages, weak productivity and underinvestment, via Reuters. According to the National Institute of Economic and Social Research (NIESR), via The Guardian, the UK’s potential growth rate has fallen to just 1.25% per year.

💬 Investment Implications:

• Productivity Tech May Outperform: Automation, AI, and infrastructure modernisation could see strong capital inflows.
• Defensive Tilt for Now: Given structural weakness, investors may prefer resilient sectors like utilities, healthcare, and dividend-paying equities.
• Policy Matters: Upcoming Autumn Statement may include targeted support for capital investment and innovation.

Dubai Attracting a New Wave of Millionaires

The UAE saw a net inflow of 6,700 millionaires in 2024, via Henley & Partners, more than any country globally. Dubai’s appeal lies in its 0% personal tax rate, luxury lifestyle, and investment-friendly framework via DIFC and ADGM. Over 130,000 millionaires now live in the UAE, and the number of centi-millionaires ($100 million+) is expected to double by 2035, via Horacle Consulting.

💬 Investment Implications:

• DIFC & ADGM Attract HNW Structuring: Use of common-law trusts, 0% tax holding entities, and flexible family office regimes make these financial centres globally competitive.
• Onshore vs Offshore Optimisation: Dubai offers “offshore-style” vehicles (e.g. RAK ICC) with UAE oversight. Many HNWIs are redomiciling wealth to benefit from the ecosystem.
• Residency ≠ Tax Freedom Without Planning: Golden Visas are easy to obtain, but tax advisors are essential to exit old tax regimes cleanly and avoid dual obligations.

Markets Summary (as of 04/07/25)

FTSE 100 Index: 8,872.34, up 35.14 points (+0.40%) (Via: ADVFN)

GBP/USD Exchange Rate: 1.2597, up 0.0055 (+0.44%) (Via: WSJ)

Brent Crude Oil: $79.11 per barrel, up $2.03 (+2.63%) (Via: Reuters)

This brief is intended for informational purposes only and does not constitute financial advice. Please consult a qualified adviser before making any investment decisions.

Looking for a second opinion on your wealth strategy? Compare Wealth Managers connects you with top-rated, FCA-regulated advisers for free. Click the orange “Start comparing” button to begin or read our 5* Trustpilot reviews.