As we kick off 2025, the UK property sales market is poised for an exciting year with plenty of challenges and opportunities. Building on the trends we saw in 2024, the market is expected to see moderate price growth, increased activity from sellers, and continued buyer demand, albeit tempered by affordability concerns. Here’s a detailed look at what to expect in 2025.

House prices in the UK rose steadily in 2024, with Nationwide reporting consistent growth throughout the year. This trend is expected to continue in 2025, albeit at a more measured pace. Agents across the country predict moderate growth, with Rightmove projecting a rise in asking prices driven by increased seller activity and sustained demand. Areas such as Brighton and Sussex are expected, as ever, to see stronger growth due to their desirability and limited housing stock.

According to Zoopla, while house price growth is expected nationally, regional variations are becoming more pronounced. Half of UK homes rose in value during 2024, with the South East, including Brighton and Sussex, among the strongest performers. These areas benefit from their cultural appeal, strong infrastructure, and high demand from both occupiers and investors.

A record-breaking number of sellers entered the market at the end of 2024, with new Boxing Day listings setting an all-time high, according to Rightmove. This surge in activity reflects growing confidence among homeowners, buoyed by stable economic conditions and improved mortgage affordability. This trend is expected to persist in 2025, creating a competitive market environment and offering buyers a wider range of properties to choose from.

Additionally, the looming stamp duty changes are motivating sellers and buyers to act sooner rather than later. This rush, however, has also contributed to more significant asking price discounts in some regions, creating potential opportunities for savvy buyers.

One of the significant challenges of 2024 was the high rate of property sales falling through, with thousands of transactions collapsing before completion. According to Property Reporter, fall-through rates were driven by a combination of factors, including:

  • Overpricing of properties leading to failed negotiations.
  • Mortgage issues, particularly for buyers stretched by affordability checks.
  • Chain dependencies, where delays or failures in one transaction disrupted multiple others.

 

Mortgage approvals have declined slightly at the start of 2025 but remain above the six-month average, indicating a stable borrowing environment. The drop in approvals reflects stricter lending criteria and ongoing affordability challenges. However, the borrowing market remains accessible, particularly for well-qualified buyers, supported by stable interest rates.

Brighton and the wider Sussex area remain strong performers in the residential sales market. The region’s strength comes from a combination of coastal appeal, cultural vibrancy, and proximity to London, and continues to attract buyers. House prices in Brighton are expected to grow at a rate above the national average, driven by limited supply and high demand from both local and international buyers.

At the same time, regional insights from Zoopla indicate that Brighton and Sussex are benefiting from a renewed focus on quality of life. Buyers are prioritizing locations offering lifestyle benefits, such as easy access to nature, cultural amenities, and vibrant communities .

 

Key Drivers for 2025

  1. Economic Stability: The broader UK economy is showing signs of resilience, supporting market confidence and enabling steady property price growth.
  2. Increased Supply: A surge in seller activity will provide more options for buyers, reducing the intensity of bidding wars in some areas.
  3. Stamp Duty Volatility: Anticipated changes to stamp duty policies may create short-term fluctuations in activity as buyers and sellers seek to finalize transactions before adjustments take effect .
  4. Sustainability Focus: Properties with eco-friendly features will continue to command a premium as buyers prioritize energy efficiency and lower running costs.
  5. Technology and Data Transparency: Improved online tools and greater access to market data are empowering buyers and sellers, facilitating quicker and more informed decisions.

 

Advice for Buyers and Sellers

For Buyers:

  • Get Pre-Approved: With lending criteria tightening, securing a mortgage pre-approval will strengthen your position in negotiations. Further underlining the value of a good mortgage broker.
  • Act Decisively: The competitive market environment requires quick and informed decision-making to secure desirable properties.

For Sellers:

  • Price Realistically: Avoid overpricing your property to prevent lengthy delays and potential fall-throughs.
  • Work with Experienced Agents: A skilled agent can help manage the sales process efficiently, minimising the risk of delays and fall-throughs.

 

The property sales market in 2025 is set to be a year of growth, tempered by challenges in affordability and transactional reliability. Sellers can look forward to strong demand and competitive pricing, while buyers should be prepared to navigate a competitive landscape. By staying informed and working with experienced professionals, all parties can make the most of the opportunities the year ahead has to offer.