The UK housing market recorded nearly 1.7 million property listings in 2025, representing a 7% increase compared to the average since 2017, according to data from Chris Watkin and TwentyEA. However, this increase in supply has coincided with moderating price growth and declining buyer activity in the final quarter of the year.
Gross sales reached the second-highest level on record, with approximately 74% of advertised properties sold during the year. Government transaction data shows a lower completion rate, with just over 1 million transactions recorded by the end of November, suggesting a final figure of around 1.1 million for 2025.
Budget uncertainty dampens market activity
Zoopla reported that speculation surrounding the government budget dampened housing market activity in late 2025 beyond typical seasonal patterns. The fourth quarter recorded the sharpest fall in sales agreed since 2022, with demand running 12% below the previous year and sales agreed down 9%.
“This slowdown will not affect 2025 transaction totals, as completions typically lag by around 5 months. The impact is expected to emerge in early 2026, contributing to a modest dip in sales to 1.18m,” Zoopla stated.
Buyer registrations decline
Propertymark data shows the average number of new prospective buyers registered per member branch fell to 57 in November 2025. Properties available for sale at each member branch averaged 41 properties, representing a decline from previous months. The average number of new listings per branch stood at 10 properties in November.
“November’s figures point to a housing market that remains resilient but measured as we head toward the end of the year. The slight dip in agreed sales reflects seasonal normalisation rather than weakening demand,” Propertymark commented.
Mortgage approvals edge lower
Bank of England figures show mortgage approvals for house purchases decreased by 0.7% in November 2025 to 64,530, according to Halifax. Year-on-year, approvals were 2.1% below November 2024 levels.
The RICS Residential Market Survey for November 2025 recorded a negative net balance of -32% for new buyer enquiries, down from -24% previously and marking the weakest reading since late 2023. Agreed sales registered at -23%, broadly unchanged from the previous month’s -24%, while new instructions remained in negative territory for the fourth consecutive month at -19%.
Rightmove noted that “the decade-high number of homes available on the market continues to restrict price growth, with many new sellers keen to avoid standing out by over-pricing compared with their competition.”
Market outlook
The data indicates a housing market characterised by increased supply and moderating demand. With property listings at an eight-year high and buyer registrations declining, the balance between supply and demand is expected to continue exerting downward pressure on price growth in early 2026. Transaction volumes are forecast to dip modestly, with completions reflecting the reduced sales activity from the final quarter of 2025.
