As we close out January, the UK property market continues to show resilience, with increasing sales, rising house prices, and a growing stock of available homes. Here's an in-depth look at this week's key trends.
More Homes Hitting the Market
The number of new property listings climbed to 35.9k this week, up from 34.9k last week, reflecting a 13% increase compared to the same period in 2024. This surge also marks a 12% rise against pre-pandemic levels from 2017-2019, signalling growing confidence among sellers.
Price Reductions Still a Factor
Despite increased listings, 21k properties had price reductions this week. This means approximately 1 in 8 residential sales stock is being adjusted down each month (12.1%). While this is slightly higher than the 11.9% average in 2024, it remains within reach of the 10.6% long-term average, suggesting a stabilisation in price corrections.
Sales Activity Gathers Pace
Buyer demand remains strong, with 27.5k homes sold subject to contract (STC) this week, an increase from 25.7k in Week 3. This represents a 29% uplift compared to 2024 YTD and a 37% increase against 2017-2019 averages.
Sale-Through Rate Shows Positive Momentum
January saw 15% of available residential stock successfully sold STC. While this is slightly below the 15.3% monthly average from 2024, it remains promising. The long-term average sits at 17.9%, leaving room for further improvement.
Fewer Sales Falling Through
The number of sale fall-throughs last week stood at 6,186, equating to 22.5% of gross sales. This is lower than the 7-year average of 24.2% and significantly below the 40%+ levels seen in the wake of the 2022 Truss Budget. However, the January 2025 total fall-through rate reached 6.03%, slightly higher than 5.36% in 2024, indicating ongoing market volatility.
Net Sales on the Rise
With 21.3k net sales recorded this week, the market remains robust. This figure represents a 29% increase compared to 2024 YTD and a 32% jump from 2017-2019 averages, reinforcing the growing demand for property.
Exchange vs Withdrawal – Overvaluation Still a Concern
Estate agents continue to struggle with overpricing, as 46.1% of listed properties in January were withdrawn unsold. In contrast, 53.9% successfully exchanged and completed, highlighting the need for realistic pricing strategies in the market.
Stock Levels at a Multi-Year High
The number of properties on the market at the end of January stood at 660k, a notable increase from 605k in December. This is well above recent years, including 525k in 2023 and 373k in 2022, reflecting a shift towards a more balanced market.
Sales Pipeline Remains Strong
With 440k sales agreed but not yet completed, transaction activity is well above the 354k recorded in January 2024. This suggests a positive outlook for completions in the coming months.
House Prices Continue to Climb
The latest £/sq.ft metric places January 2025’s final figure at £342/sq.ft, reflecting a 3.64% year-on-year increase from £330/sq.ft in January 2024. This trend indicates continued price growth, albeit at a steadier pace.
Final Thoughts
The UK property market has entered 2025 with strong momentum. Higher sales, increasing stock, and rising prices indicate a healthy level of demand, despite continued challenges around pricing and affordability. If this trajectory continues, the year ahead could be a positive one for both buyers and sellers alike.
