The UK housing market has remained resilient so far in 2025 with new listings surpassing 1.5 million and sales agreed (SSTCs) exceeding one million, according to data from TwentyEA.
At the end of October, demand and supply were up 4.1% and 3.3% respectively compared with last year, with the current demand-to-supply ratio at 72.4% – the highest level since 2022.
The slight 2.7% year-on-year drop in October is seen as a temporary “blip,” following exceptionally high activity in October 2024 as buyers rushed to act ahead of the Autumn Budget.
Detached and semi-detached homes are seeing rising popularity, with the demand-to-supply ratio for detached properties up 4.6% on 2024.
FALLING INSTRUCTION PRICES
Average instruction prices have fallen 0.8% (£3,700) over the past year, though regional variations are pronounced: prices are generally rising in the North and Midlands but static or falling in the South, with Inner London down more than 3% year-on-year.
Price reductions continue to rise, exceeding one million so far in 2025 – 14% higher than last year.
Overall, 38.7% of concluded listings have seen at least one price reduction, compared with 38.0% in 2024. The biggest increases are seen in properties over £1 million and in London, where Inner London reductions are up 2.9 percentage points.
BUDGET CLARITY
Katy Billany (main picture), Executive Director of TwentyEA, says: “The data shows that both supply and demand remain resilient despite a dip in October and hopefully we’ll start to see demand increasing again once we have some clarity following the Autumn Budget.
“With more homes on the market, motivated sellers are adjusting their expectations and offering more competitive pricing, leading to increased levels of price reductions, now more than one million so far this year.”
AFFORDABILITY BOOST
And she adds: “At this point, all eyes are focussed on the Chancellor’s Budget, which obviously falls much later than usual, to see what policy changes may emerge.
“Any measures that boost affordability or encourage transactions will help sustain the positive momentum we’ve seen across most regions throughout 2025.”
