According to a report fromTwentyCi, the number of new instructions in Q3 rose by 1.7% year-on-year to 454,325, while sales agreed increased by 332,612, an increase of 3.2% on the same period last year.
There was a slight drop-off in exchanges, with a decrease of 0.7% year-on-year to 235,421. However, the report said levels had stabilised following a drop-off in the prior quarter as more people tried to complete in Q1.
Approximately 82,060 sales fell through during the period, which is slightly up from 81,677 in the same period last year.
The report added that around 209,998 properties were withdrawn during the period, which is a rise from 196,515 in Q3 last year.
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Price reductions ‘key feature’ of 2025 property market
TwentyCi said price reductions on advertised properties were a “key feature” of the property market in 2025.
There have been 919,000 price reduction events in the year to date, which is 16% higher year-on-year.
Approximately 38.7% of concluded listings reported at least one price reduction, and this was across all price bands but was more pronounced in the £1m-plus bracket.
TwentyCi said price reductions are falling in the North but rising in London and the South.
Rental property stock on the rise but below pre-pandemic levels
Looking at the letting market, the supply of rental properties in the UK has risen by 64,750 in the last year but is 159,000 lower than in 2019.
Rental property supply is 6.9% higher than the prior year, and over one million properties have come onto the market to let year to date in 2025.
However, the report said affordable rentals remain an issue and supply has reduced for £0-800pcm properties, which are down 2.5% year-on-year.
Strong supply growth has been observed at the £800-1,500pcm price range, which has risen by 11.8% year-on-year.
For 2025, lettings agreed volumes are 5.6% higher than 2024 and are at their highest level in six years.
Supply growth is outstripping demand across all price points. Growth in demand is strongest in the £800-1,500pcm range, at 11% year-on-year.
Rumoured inheritance tax changes fuelling
TwentyCi said there had been a “sharp increase” in property market activity among pensioners following inheritance tax announcements last year.
In the Budget last year, Chancellor Rachel Reeves said inheritance tax thresholds would be frozen until 2030 and inherited pensions would be liable for the tax from 2027. Agricultural property relief and business property relief were also changed.
This shows a “strategic shift”, with “profound implications for estate agents, financial advisers and the broader housing market”.
Looking at property listings, the percentage of retired people who have listed their home for sale has increased by 16% since Q4 2024 and 10% since Q3 2024.
The percentage of retired people who have moved home since Q4 2024 has risen by 26%, while it is 45% since Q3 2024.
