The Housing Market: Promising Signs for 2025
Welcome to the first housing market snapshot of 2025, reviewing data from sales and lettings agents on the front line of the housing market.
The data for this new report is from before Christmas of course, but even so it offers us valuable indicators of the trends set to dominate the market for the first half of this year.
Housing market sales figures
A whole raft of figures from the sales market all point broadly in a promising direction.
The average number of new prospective buyers registered per Propertymark member branch saw an uplift in November to 108 – a two-year high. And the average number of sales agreed per member branch is the best in any November for the last three years.
Meanwhile the overall number of properties achieving their asking price nearly doubled from 6% in October to 11% in November. This indicates there were slightly fewer homes on sale towards the end of the year (as often the case as Christmas approaches). So buyers had to move faster and offer at or near the asking price to secure their favoured new home.
On average in November, each branch saw 11.3 homes placed for sale. Taking their overall volume of homes for sale to 44 properties – five fewer than a month earlier. Come early spring, this volume is likely to get quite a bit larger.
In November – again typical of what happens ahead of the festive season – both the average number of viewings, and the number of new market appraisals dipped slightly.
So what does this all tell us? Well, it’s no coincidence that a rise in buyers and the three-year record number of sales for a November happened to coincide with the Bank of England’s interest rate cut.
This triggered a spate of cheaper mortgage rates offered by banks and building societies. In turn inspiring confidence amongst would-be buyers, hence the flurry of activity.
The rental market data
Last month we reported that agents had seen a subtle but important shift in the rental market. And that’s been reinforced by this latest data.
Make no mistake about it, demand for rental property continues to outstrip supply. With the average number of applicants per branch still hitting around seven people for each available home in November. But that’s sizably better than the 11 or more which we saw earlier in 2024.
Some of that’s down to seasonal factors (fewer tenants move at the height of winter). But it may also indicate that the landlord sell-off seen earlier in 2024 has now eased.
So the average number of new prospective renters dipped very slightly throughout November from 93 per branch to 92. While the average number of properties available for rent at each member branch jumped to a two-year high of 13 in November .
And that market improvement is seen more dramatically in rent levels.
After another year of large increases there may just be light at the end of the tunnel for hard pressed renters. Some 59% of agents reported that rents remained generally static, with 17% reporting a fall and 24% reporting increases.
I genuinely worry about how the lack of properties to let, and high rents, may affect a whole generation’s chances of saving enough to get on the property ladder. So although these figures show only modest improvements, I welcome them.
The housing market in the next few months
Read between the lines of this latest housing market report and you can see the challenges and opportunities that buyers and sellers, tenants and landlords face in early 2025.
The sales market, even just before Christmas, was gearing up for a strong first quarter of 2025 at least. This will be driven mostly by first time buyers seeking to beat the change in stamp duty thresholds. Which return to long-term (and more expensive) levels on April 1.
Beyond April, the hope is that further interest rate cuts by the Bank of England will create optimistic mood-music and boost buyer confidence across all sectors.
The rental market may just be settling down after years of uncertainty. The new Renters’ Rights Bill becomes law this year. It gives greater protections to renters but has unsettled landlords, who fear new regulations will impose costs making buy to let simply unviable.
Have those landlords spooked by the changes already sold, meaning rental stock will stop reducing? Let’s hope so, otherwise rents will rise further in 2025.
A final concern
This month’s housing market figures overall give genuine reasons to hope for a good 2025, especially for sellers and buyers. But there’s one continuing worry – the time it takes to sell and exchange.
The proportion of agents reporting an average of 17 weeks or more for a house purchase to progress from a seller accepting a buyer’s offer, to actually exchanging contacts, is now nearing 40% and the trend is increasing.
It’s a long-held bugbear of mine that house sales take so long. Delay encourages buyers to get cold feet, and as a result the number of deals collapsing therefore rises as well.
Move iQ has many suggestions on how sellers and buyers can help avoid delays. And it’s key to discuss your own circumstances with a your agent and your conveyancer.
If you’re taking the plunge in the sales market in 2025 – and there’s no reason not to. If your circumstances allow – then be ready for it to take some time. But remember, to get the home of your dreams, it really will be worth it!
For local housing market insights from qualified local accredited professionals, click the regional links below to get the latest in your area:
If you haven’t done so already subscribe to the newsletter to receive updates and advice direct to your inbox.
Last Updated: January 22nd, 2025
