The past few weeks have delivered a wave of significant headlines: the budget announcement, a drop in the base rate, rising inflation, and Donald Trump’s re-election. While such news might normally signal uncertain times for the property market, the data suggests otherwise.
Surprisingly, the UK property market remains buoyant. Compared to last year, the number of new listings, properties for sale, and sales agreed are all up. Mortgage approvals have risen for five consecutive months—42% higher than this time last year—and property transactions are at their highest levels since August 2022.
While November did see a slight seasonal slowdown compared to October, this is typical towards year-end. Asking prices dipped by 1.4%, larger than the usual November drop of 0.8%, likely reflecting pre- and post-budget nerves. Sellers are becoming more realistic with pricing, and fewer are withdrawing their properties—signs of a committed market.
With the stamp duty threshold set to expire at the end of March, buyers and sellers alike are under pressure to act quickly. On average, property transactions are taking around five months to complete, meaning December agreements face a tight window to beat the deadline.
Affordability remains a concern. Despite stronger income growth—disposable income is up 15% in two years—buyers’ budgets are stretched by higher borrowing costs. While mortgage rates have fallen slightly, the market remains price-sensitive, and sellers who price sensibly are the ones securing sales.
The property market looks set for a busy start to 2025, with activity levels boosted by pent-up demand and the stamp duty deadline. Wage growth, combined with steadier mortgage rates, is supporting market recovery, though affordability pressures will persist. First-time buyers remain key to keeping the market moving, as they enable housing chains to progress.
In summary, despite economic challenges, the UK property market has proven remarkably resilient. Sellers must remain realistic on price as buyers carefully weigh affordability, but demand, supply, and overall confidence suggest a positive outlook as we head into the new year.
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