The property market is unbalanced with buyers holding unprecedented power and in Autumn 2025 it’s showing deep contradictions.
Surface numbers suggest resilience, but beneath the data lies overpricing, fragile deals, regional divides and political uncertainty.
Buyers hold power unprecedented in recent years, sellers must price realistically and cash-equipped investors will find opportunity.
Until pricing, policy and confidence realign, the market will remain imbalanced and serve few well.
SHAKY GROUND
I have watched the housing market for decades, and it feels like shaky ground disguised as solid.
Activity looks strong, with weekly listings around 34,300 and sales running 5.3% ahead of last year.
But deeper forces are at play. September saw price reductions hit 14.1% above the five-year norm, and only half of listings complete. Half of market activity leads nowhere, undermining confidence.
PRICING DYSFUNCTION AND OVERREACH
Sellers continue to test buyer limits, but the market is pushing back. In 2025, new listings averaged 36,200 weekly, yet 14.1% of homes had price cuts in September, nearly 3.4 points above the five-year average.
This surge shows homes are overvalued at first listing. When prices start too high, distrust spreads. Buyers hesitate, agents chase deals longer and momentum stalls.
This scale of price reduction signals a widespread disconnect between seller expectations and market reality.
DEAL FRAGILITY AND FALL-THROUGHS
Contracts no longer guarantee sales. Fall-throughs hit 24.6%, down slightly from last week’s 25% but still above long-term averages.
Nearly half of listings fail to complete, wasting buyers’ and sellers’ time and money. Surveys are instructed, solicitors start work, sellers prepare to move and then deals collapse. Greater transparency is needed to rebuild trust in transactions.
REGIONAL DIVERGENCE
Beyond individual deal failures, broader regional patterns are emerging. The divide between London and the rest of the UK is stark.
From January to July, London averaged 3,195 weekly listings with a 47.2% conversion. By August and September, listings dropped to 2,993 and sales-agreed fell 19% to 1,222; conversion slid to 40.8%.
Meanwhile, the rest of the UK held steady with 31,108 weekly listings, 23,462 sales-agreed and a 75.4% conversion rate.
London’s weakness is driven by overvalued stock, cautious international buyers and higher transaction costs. For cash-ready investors who can act quickly, opportunity exists, but most face a harder market to navigate.
SUPPLY STRONG, DEMAND FALTERING
Supply remains strong, with 751,000 homes available, 4% more than last year and 10% above pre-pandemic levels. Yet gross sales average 26,100 weekly and net sales 19,900, reflecting weakening demand. Properties stay on the market longer, price cuts deepen and sellers chase the market downwards.
This imbalance benefits no one. Buyers gain bargaining power but sellers risk equity erosion through repeated cuts.
Agents bear costs amid ongoing uncertainty. Without renewed buyer confidence, transactions will continue to stall.
POLITICAL UNCERTAINTY AND FISCAL PRESSURES
These supply-demand imbalances are further complicated by external factors. All eyes now turn to the November Budget.
Talk of new property taxes and transaction levies is freezing decisions. Sellers hold back price reductions until they know what lies ahead; buyers hesitate amid unclear conditions.
This paralysis hurts all parties.
Estate agents work harder for less, buyers miss opportunities and sellers see values pressured further. Without clear policymaking, the market’s current malaise will persist.
