A busy start to the year for estate agents amid record listings as demand surges

The figures showed that supply was running at 7.3% higher than January 2024. This year–on–year growth was seen across all price bands, with the strongest rise of 12% seen for properties within the £350k to £1m price bracket. All UK regions saw an increase in supply with Inner London and the East Midlands leading the way with 11.3% YoY growth.  

Demand 

In terms of demand (sales agreed), January 2025’s volume was just under 100,000 which is the highest level seen since January 2021 and is much higher than January 2024 by 17.1%.  

All UK regions saw an uplift except for Northern Ireland. The strongest growth rate was seen in the East Midlands (27.2%) and the East of England (26.8%) while all price bands benefitted, with the largest YoY growth in the £350k – £1m (28%) price bracket, followed by £200k – £350k (18%).  

Katy Billany, executive director of TwentyEA, said: “Last year, two interest rate cuts and expectations of more to come boosted consumer confidence in the property market. Total transactions for 2024 exceeded 1.1 million, marking a 7.3% increase from 2023. The surge in supply and demand since January 2025 began, coupled with an additional rate cut, is great news for estate agents who have started the year with expanded portfolios and strong sales prospects. We believe growth in transactions will continue well into the year. 

“While both demand and supply have increased across all property types, there are still notable nuances in the market. Houses, especially detached ones, are seeing growing popularity. The demand-to-supply ratio for this type of home has risen by 18.4% compared to the previous year, while for flats, it has decreased marginally since January 2024.” 

Instruction prices  

The average original instruction price in January has fallen by 0.6% in the last year but risen by 24% since 2019. On a regional basis, instruction prices continued their 2024 trend and increased in the North and Midlands, while prices in the south were static or falling.  

The North East had the largest instruction price increase year on year (9.9%) while Inner London was the only region to see year on year prices fall by more than 1% (-13.9%). 

Price reductions 

Price reductions on advertised properties were a key feature of the property market in 2024 and this trend has continued into 2025. In January alone there were more than 93,000 price reductions – the largest amount on record – however this was most likely related to the increased volume of supply. In January 2025, 36.6% of concluded listings had at least one price reduction but in January, this was slightly higher at 38.5%.  

Billany added: “Compared with last year, the price reduction rate in January 2025 reduced in all price bands and in all regions (except for Wales) which is possibly a sign that some sellers are becoming more realistic and accepting that mortgage costs remain high.” 

Time to sell   

The time to sell in January 2025 increased to an average of 90 days which is the longest period observed in the last six years and 7.6% higher than January 2024 when it was 83 days. Every price bracket has been affected and on average, it now takes 127 days to sell a property for £1m+.  

Most UK regions except for Northern Ireland and the North East, have seen the time to sell increase. The South East observed the largest YoY increase of 14% (+11 days).