Residential exchanges edged close to the one-million mark in 2025 and reaching 986,665, a 12.6% increase on 2024, the latest Property and Homemover Report from TwentyEA revals.
The uplift was supported by modest year-on-year growth in activity, with new instructions up 2.1% and sales agreed volumes rising 2.3%.
However, the data also points to clear signs of market softening as the year progressed, particularly in Q4.
Fall throughs exceeded 300,000 across the year, up 4.5% on 2024, while price reductions passed the one-million mark, an increase of 10.8%.
GREATER FRAGILITY
The number of withdrawn properties also climbed sharply, rising 7.6% year-on-year to 803,612, reflecting greater fragility in transactions as buyer confidence weakened.
The early part of the year proved far more resilient than the latter months, with activity tailing off after the end of stamp duty support and heightened uncertainty ahead of the Autumn Budget.
STAMP DUTY
Katy Billany (main picture), executive director of TwentyEA, says: “H1 25 enjoyed a strong level of transactions, supported by the Stamp Duty concession.
“At the start of the year, residential buyers still benefited from the temporary higher nil-rate threshold of £250,000, which reverted to £125,000 on 31st March 2025. Meanwhile, first-time buyers saw their nil-rate threshold return to £300,000 from £425,000.
“The conclusion of the Stamp Duty Relief removed a key support for transactions, ultimately slowing activity. We saw significant market softening in the latter part of 2025, driven by reduced consumer confidence ahead of the November Budget.
“Rising council tax rates discouraged buyers from purchasing extra properties.”
“This was further reinforced by the announcement of a Mansion Tax on properties valued over £2 million, due to take effect in April 2028 which has led to further high-end buyer caution in the premium market.
“Also, rising second-home council tax rates discouraged buyers from purchasing extra properties, slowing transactions in the top-end and holiday-home market.”
STABILISED RENTS
In contrast, pressures in the rental sector eased over the year, with the volume of properties coming to let rising by almost 10% compared to 2024.
Increased rental availability helped stabilise rents, with the average let agreed price holding steady at £1,495 per month.
Billany adds: “Outer London experienced the largest year-on-year increase in Let Agreed, rising by 14.1%. Wales also emerged as an increasingly attractive rental location, experiencing a 11.8% growth year-on-year.
Northern Ireland was the only region to see Lets Agreed fall, with a decline of 6.3% compared to 2024.
In terms of major cities, Cardiff and Leeds led the way with a 12% increase in Lets Agreed year-on-year.”
