Property market analyst Kate Faulkner has shared insights indicating a notable rise in property listings, alongside steady sales activity.
While house prices have remained relatively stable and are still struggling to outpace inflation, the number of transactions currently taking place is fairly strong. According to data from TwentyCi, the number of property listings has climbed to its highest point in nine years.
Another contributing factor is the recent rush to complete purchases before the end of the Stamp Duty Land Tax (SDLT) holiday in England this March. This has driven up the volume of sales.
Thanks to this increase in listings and a push to finalise deals, the current rate of completions now ranks as the third highest in the past nine years.
Many legal firms have reported a significant increase in workload recently, with some closing nearly twice the usual number of property transactions. This surge was largely driven by the race to complete purchases before the end of March, as buyers, estate agents, conveyancers, and removal companies all made a concerted effort to finalise as many moves as possible within the tight deadline.
The push was partly due to policy-driven pressure points, such as changes in tax or legal frameworks, which often create spikes in housing activity. While this burst of completions was beneficial in the short term, it may have the knock-on effect of slowing down activity in the months that follow. It is now expected that April and May could turn out to be the quietest periods for the housing market this year, as the earlier rush may have pulled forward demand that would have otherwise been spread out more evenly.
However, there is still reason to remain cautiously optimistic. Market analysts are forecasting a possible drop in mortgage rates as early as May. Should this happen, it could help to reignite interest from potential buyers who have been holding off due to affordability concerns. A reduction in borrowing costs may encourage more people to enter the market, which in turn could stimulate another wave of sales activity.
Additionally, further interest rate cuts are anticipated later in the year, which could provide continued support to the property sector. If these predictions come true, it would not only make home buying more accessible but also help balance the market after the lull expected in spring. This renewed momentum could result in more consistent transaction volumes in the second half of 2025.
Overall, while the market might experience a temporary slowdown following the March rush, the outlook remains hopeful. With the right conditions, particularly favourable lending rates, there’s potential for demand to recover strongly — leading to a more stable and active housing market as the year progresses.
Supply and demand data from the indices
“However, new Spring sellers may find it more challenging this year, as they are competing against a decade-high number of other sellers. New Spring buyers on the other hand, are looking at the best choice of properties for sale at this time of year since 2015. This is some consolation for these new buyers who won’t benefit from the current additional stamp duty savings in England, and who face higher tax charges from April.”
“House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.
“Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook. However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year.”
“The number of homes for sale is growing faster than the number of sales being agreed, boosting choice for buyers and re-enforcing a buyers’ market. While house price inflation is slowing, the number of sales agreed continues to increase, up 5% on a year ago, with demand 10% higher.
“The number of homes for sale is 11% higher than this time last year, and set to keep rising as we enter the spring selling period. Almost 30% of homes are listed for sale between March and May each year.”
“On average, there were 10.7 homes placed for sale per member branch in February 2025, up from 10.5 the month previous.” “Stock levels reflect the average number of properties available for sale at each member branch. In February 2025, stock levels were marginally down month-on-month with an average of 41 properties for sale at each member branch, compared with 43 the previous month.”
“The average number of sales agreed per member branch in February 2025 remained static, compared to January 2025. It does however represent a stronger start to the year, when compared directly to the previous three years.”
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