In the year to October, the supply of homes coming to the market for sale was up by 3.3% compared to the same 10-month period in 2024, while buyer demand was up 4.1%.
Demand was at its highest level seen since 2022 and the current supply/demand ratio is 72.4%, according to data from TwentyEA. This ratio is higher than in 2023 and 2024.
Although demand fell by 2.7% year-on-year in October, TwentyEA said this is likely to represent only a “temporary blip”.
October 2024 saw exceptionally high activity as falling interest rates prompted buyers to rush transactions ahead of the 30 October Budget.
Meanwhile, detached houses are getting more popular, as the supply/demand ratio has risen by 4.6% versus the prior year.
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Price reductions
The average original instruction price in 2025 has fallen by 0.8% (£3,700) in the last year.
On a regional basis, instruction prices are mostly increasing in the North and the Midlands, while prices in the South are static or falling.
Inner London is the only region to see year-on-year prices fall by more than 3%.
Meanwhile, the number of price reductions has now exceeded one million so far this year, which is 14% higher year-on-year.
Katy Billany, executive director of TwentyEA, said: “The data shows that both supply and demand remain resilient despite a dip in October, and hopefully we’ll start to see demand increasing again once we have some clarity following the Autumn Budget.
“With more homes on the market, motivated sellers are adjusting their expectations and offering more competitive pricing, leading to increased levels of price reductions, now more than one million so far this year.
“At this point, all eyes are focused on the Chancellor’s Budget, which obviously falls much later than usual, to see what policy changes may emerge. Any measures that boost affordability or encourage transactions will help sustain the positive momentum we’ve seen across most regions throughout 2025.”
