Welcome to this week’s comprehensive update on the UK property market. As we approached the end of February, we saw a dynamic landscape with some interesting trends emerging. Let’s dive into the key figures and what they mean for property professionals and homeowners.
Listings: A Steady Flow
The market saw 35,800 new listings this week, a slight dip from last week’s 36,100. However, when we look at the bigger picture, the year-to-date figures are robust. We’re seeing a 9% increase compared to Week 7 of 2024, and a 9.2% increase compared to the average of 2017, 2018, and 2019. This sustained flow of new properties indicates a healthy level of activity, providing ample choice for buyers.
Price Reductions: A Balancing Act
This week, 20,600 properties saw price reductions, translating to approximately one in eight residential sales stock being reduced monthly (12%). This figure is slightly above the 2024 average of 11.9%, and also slightly above the long-term 5-year average of 10.6%. This suggests sellers are adjusting their expectations to meet current market conditions, highlighting the importance of accurate valuations and strategic pricing.
Total Gross Sales: Strong Momentum
The market continues to demonstrate strong sales activity, with 27,400 UK homes sold STC (Subject To Contract) this week, slightly down from 27,600 last week. However, the year-to-date figures are impressive, showing a 20% increase compared to 2024 and a 28% increase compared to the 2017-2019 average. This sustained increase in agreed sales underscores the resilience and ongoing demand in the UK property market.
Sale-Through Rate: A Closer Look
January’s run rate saw 15% of residential stock sold STC, slightly above the 13.9% recorded in January 2024. However, it’s slightly below the 2024 monthly average of 15.3% and significantly below the long-term 8-year average of 17.9%. This suggests that while sales are occurring, the pace is somewhat moderated compared to historical averages.
Sale Fall-Throughs: Navigating Challenges
This week saw 6,027 sale fall-throughs from a residential sales pipeline of 440,431 homes sold STC. 22% of gross sales fell through, slightly below last week’s 22.2%. Importantly, this is still below the 7-year average of 24.2%, and significantly lower than the 40%+ levels seen post-Truss Budget in Autumn 2022. For January 2025 as a whole, 6.03% of sales in UK agents’ pipelines fell through, slightly above the 2024 average of 5.36%. These figures highlight the importance of thorough due diligence and effective communication throughout the sales process.
Net Sales: Positive Growth
Net sales, measured as gross sales less fall-throughs, reached 21,300 this week, slightly above the 2025 weekly average of 20,600. Year-to-date figures are also strong, showing a 17% increase compared to 2024 and a 22% increase compared to the 2017-2019 average. This indicates a solid underlying demand and a healthy level of completed sales.
Residential Sales Stock: Increased Availability
At the end of January 2025, there were 660,000 properties on the market, in line with the expected increase from 605,000 in December. Comparing this to historical data, we see a notable increase compared to recent years, highlighting a greater availability of properties for buyers.
Residential Sales Sold STC Pipeline: Strong Future Activity
The residential sales sold STC pipeline reached 440,000 at the end of January 2025. This significant figure indicates a robust pipeline of future sales, suggesting continued activity in the coming months.
UK House Prices (£/square foot): Steady Growth
Our £/sq.ft metric, which has proven to be a reliable predictor of Land Registry figures, shows a final figure of £342/sq.ft for January 2025. This represents a 3.64% increase over the past 12 months, demonstrating steady growth in UK house prices.
Conclusion
The UK property market remains dynamic, with strong sales activity and a steady flow of new listings. While price reductions and fall-throughs are factors to consider, the overall trend indicates a healthy and resilient market.
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