As 2025 nears its end, the year has held many surprises – not least in the autumn budget with the property income tax rises surprising landlords, for example. But what else did 2025 deliver and what are the lessons to be learnt?
A spring rush
The 2025 spring rush was no surprise. Rachel Reeves’ 2024 autumn budget announcement that stamp duty thresholds would reduce from the end of March 2025 prompted buyers and sellers to accelerate moving plans in the spring to avoid increased costs, especially for those buying at the higher end of the market.
Resilience post-stamp duty rise
This rush meant that many had predicted that the market would stall after the revised stamp duty thresholds took effect. Yet April’s house price index from Rightmove showed a 1.4% rise in average prices to a new record of £377,182, even though the number of new homes for sale was also at the highest in a decade at that point.
It seemed that far from abandoning their moving plans, buyers were pushing through with deals. By May, however, house price growth and new buyer demand slowed.
Competitive pricing has become key
Bigger than usual price drops followed in June and July, stabilising a little in the traditionally slower month of August. But deals continued to complete, with the number of sales agreed 8% ahead of the previous year in July and at their highest for the month since 2020. It evidenced the importance of competitive pricing to ensure property sales.
Resilience continued in early Autumn before budget nerves kicked in
The resilience continued into early autumn, with buyer and seller demand maintained. However, by November, the nerves caused by the late calling of the budget and its rumoured contents had hit hard. Average new seller asking prices fell by 1.8%, according to Rightmove, in a larger-than-usual November drop. Competitive pricing continued to be key, with data showing that asking price reductions for properties already on the market were at their highest level since February 2024.
The upper end, where speculation had focused on a potential mansion tax for £2 million+ homes and stamp duty changes for properties of £500,000 or above, saw sales down 13% and 8% year-on-year respectively, according to Rightmove. The budget eventually confirmed the new surcharge would apply only to properties of £2 million and above, estimated to account for less than 1% of the market and the rumours of stamp duty reform proved groundless.
What’s in store for 2026?
Following the budget, the housing sector will be looking ahead to 2026 to see how the announcements impact property sales, with premium property particularly under pressure. However, falling interest rates and rising wages boosted affordability in 2025, and it is hoped this trend will continue with an expected December base rate cut and further cuts in 2026.
Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you with your property requirements.