Housing market data from TwentyCi suggested that buyers had the greatest level of choice in more than 10 years, with 794,000 properties listed for sale during the first five months of the year. This was 2.7% higher than the same period last year.
However, the number of sales agreed declined by 4.1% year-on-year, but TwentyCi said demand was still stronger than in 2023 and slightly higher than in 2024.
Considering the rush of activity before the stamp duty change last year, the firm said this suggested that the market was normalising rather than experiencing a downturn.
This was also supported by the data showing that average new instruction prices fell 1.2% annually to £441,400, while transaction prices had stayed fairly stable, pointing to an adjustment in activity rather than a decline.
Colin Bradshaw, CEO of TwentyCi, said: “The most striking feature of today’s housing market is the level of choice available to buyers. Supply is at its highest point in a decade, creating a far healthier environment for purchasers than we have seen for many years.
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“While demand has softened compared with the stamp duty-fuelled market of early 2025, buyer activity remains resilient by historical standards and significantly stronger than we saw in 2023. The market is becoming more balanced rather than materially weaker.”
Fewer collapsed sales but transactions remain slow
There was a slight decrease in the share of sales falling through, dropping from 24.4% last year to 23.4%, while the overall volume of fall-throughs dropped by 11.1%. TwentyCi said this indicated that most buyers were committing to purchases despite affordability changes and pressures.
Despite this, transaction times remained lengthy, with the average time from sale to agreed exchange increased to 132 days or 4.3 months, seven days longer than the same period a year ago.
TwentyCi also noted a dip in agreed sales in May, finding that while activity was stable during the first four months of the year, this dropped by 8.1% annually in the fifth month. The firm warned that this could be a sign of weaker transaction volumes this year if the trend continues.
Bradshaw added: “For lenders, there are encouraging signs beneath the headline transaction figures. Fall-through rates are improving, house prices remain remarkably stable, and buyers are entering the market with more choice and greater negotiating power. These are all characteristics of a more sustainable housing market.
“That said, the slowdown in sales agreed activity during May warrants close attention. Sales agreed are one of the clearest leading indicators of future mortgage demand, and if this trend continues, we would expect it to feed through into lower transaction volumes later in the year.”
