Record High Listings and Sales Surge
The UK property market has seen a remarkable start to 2025, with property listings reaching a seven-year high. 451,000 new properties were listed for sale in the first quarter, marking a 4% increase in new instructions compared to the same period last year. Sales agreed also saw a significant rise, up by 9.3% year-on-year, in the latest report by TwentyCi.
House Prices Hit New Records
House prices continue to climb, with the average asking price hitting a new record of £379,517 in May 2025, according to Rightmove. This represents a 0.6% increase from the previous month, and a 1.2% rise compared to May 2024. Zoopla’s data also indicates a stable house price growth of 1.6% year-on-year, with the average UK house price now at £268,250.
Regional Variations and Market Dynamics
The property market dynamics vary across regions. Northern regions of England are experiencing the strongest growth in sales and house prices, with annual rises of up to 3%, according to Zoopla. In contrast, Southern regions have more homes for sale but lower house price growth, less than 1%. Nationwide’s House Price Index highlights that rural areas have seen a 23% increase in house prices over the last five years, outpacing urban areas.
Impact of Stamp Duty Changes
The recent changes to the stamp duty threshold at the end of March have significantly influenced market activity. TwentyCi’s report shows that the number of exchanges in Q1 2025 was up by 24% compared to the previous year. However, the end of the stamp duty relief led to a temporary dip in buyer demand, which is now showing signs of recovery, according to Rightmove.
Market Resilience Amid Transaction Decline
Despite a steep decline in HMRC’s monthly transaction data, with a 66% drop in April 2025 compared to March 2025, industry experts remain optimistic. Factors such as falling mortgage rates, increased lender flexibility, and strong underlying demand are expected to support market resilience in the coming months.
Conclusion
Overall, the UK property market is demonstrating robust performance with high levels of new listings, rising house prices, and strong sales activity. While regional variations and recent policy changes present challenges, the market’s underlying strength and adaptability suggest a positive outlook for the remainder of 2025.
1: Today’s Conveyancer Property listings at seven-year high; sales agreed up 9.3% | Today’s Conveyancer
2: TwentyCi Property & Homemover Report TwentyCi Property & Homemover Report – Q1 2025 | TwentyCi
3: Rightmove House prices hit new record in May | Property news
4: Zoopla House Price Index: May 2025 – Zoopla
5: Nationwide House Price Index Annual house price growth edged higher in May
6: Today’s Conveyancer (HMRC Data) Property industry unfazed by steep decline in HMRC monthly transaction data | Today’s Conveyancer