Q1 2025
1,168
- ↓7.7%from previous quarter
- ↓32%year-on-year
The State of UK Investment
Q1 2025
Q1 2025
£3.74b
- ↓9.5%from previous quarter
- ↓35%year-on-year
Q1 2025 marks the second-lowest quarterly number of deals since 2014. It may be that we need to get used to seeing fewer deals and less investment across the UK overall, and ask ourselves: is this the new normal?
The headlines
Q1 2025 tells a mixed story. Deal activity fell to the second-lowest level since 2014, with a 7.7% drop in the number of deals and a 9.5% decline in investment compared to Q4 2024. However, it performed better than Q3 2024, which had only 1,112 deals and £3.44b invested. There were also strong gains in investment across several sectors and UK regions compared to last year.
Comparing year-on-year there has been an even sharper decline in both deal number and amount since Q1 2024. Given the 8.6% year-on-year decline in capital investment announced in our annual report, The Deal 2024, it is not surprising that this downward momentum has continued into 2025.
“Investor caution, tighter capital conditions globally, and a shift toward risk-adverse investments are reshaping the landscape.”
It may be that we need to get used to seeing fewer deals and less investment across the UK overall, and ask ourselves: is this the new normal?
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