The number of exchanges in 2025 nudged towards one million and finished the year at 986,665, 12.6% higher than in 2024, TwentyCi reveals.

The Property and Homemover Report found that both new instructions and sales agreed volumes recorded modest year-on-year growth of 2.1% and 2.3%, respectively.

However, fall throughs, price reductions and withdrawn properties were all significantly higher last year than the prior year which are reflective of a greater number of transactions and a softening of the market in Q4.

Fall throughs reached in excess of 300,000 throughout the year – 4.5% higher than 2024.

Price changes topped 1,000,000, which is an increase of 10.8% and the number of withdrawn properties hit 803,612, a marked rise of 7.6%.

Lettings

The report also shows that the rental sector saw significant easing in supply pressures, with a near 10% increase in the volume of properties coming to let in 2025 compared to 2024.

One of the key drivers is likely net migration. With existing residents leaving, previously occupied homes have been freed up, contributing to the rise in rental availability across the market and alleviating some of the strain being felt in the rental market.

The average let agreed price in 2025 at £1,495 per month is on par with 2024, albeit this figure is derived from the type of rental stock available and the location.

TwentyEA executive director Katy Billany says: “H1 25 enjoyed a strong level of transactions, supported by the Stamp Duty concession. At the start of the year, residential buyers still benefited from the temporary higher nil-rate threshold of £250,000, which reverted to £125,000 on 31st March 2025.”

“Meanwhile, first-time buyers saw their nil-rate threshold return to £300,000 from £425,000.”

“The conclusion of the Stamp Duty Relief removed a key support for transactions, ultimately slowing activity. We saw significant market softening in the latter part of 2025, driven by reduced consumer confidence ahead of the November Budget.”

“This was further reinforced by the announcement of a Mansion Tax on properties valued over £2 million, due to take effect in April 2028 which has led to further high-end buyer caution in the premium market.”

“Also, rising second-home council tax rates discouraged buyers from purchasing extra properties, slowing transactions in the top-end and holiday-home market.”

Commenting on the lettings market, Billany adds: “Outer London experienced the largest year-on-year increase in Let Agreed, rising by 14.1%. Wales also emerged as an increasingly attractive rental location, experiencing a 11.8% growth year-on-year.”

“Northern Ireland was the only region to see Lets Agreed fall, with a decline of 6.3% compared to 2024. In terms of major cities, Cardiff and Leeds led the way with a 12% increase in Lets Agreed year-on-year.”