Estate agents expect a busier market in 2025

Just over 700 domestic properties changed hands in 2024, but over 60% of those transactions took place after June.

This was an 7% increase on 2023, when only 660 flats and houses across the local and open markets were sold.

The total value of domestic properties sold in 2024 was over £432m. – almost 16% higher than in 2023.

This was reflected in an increase in the average price of a local market house of more than £16,000 to £643,500 in the latest ABC Conveyances figures.

But these figures are dwarfed by those in 2022, the end of the Covid property boom, when 988 domestic properties were bought at a combined value of almost £600m., and the average local market house sold for £675,000.

Savills director and head of residential sales Stuart Leslie said the market had built momentum over 2024.

‘Interest rates usually have a bearing, and I think people became a little bit more comfortable that they have reached their peak,’ he said. ‘Markets are always about confidence, and if people are confident, then they’ll start to move.’

He added that he expected 2024 figures to be exceeded over the next 12 months.

‘I think we’ll do better than we did this year, we’ll certainly be a good chunk better than 2023,’ he said.

‘But the average number of transactions is still down on historical levels – and I’m talking specifically about local market houses – if you take the averages back to 2005. It was about 650 units a year, and now we’re at just shy of 500.

‘So we’re going to have to go some to get anywhere near that average sort of a figure, but I think we’ll get closer towards 550 units next year which is a sort of functioning market, which we weren’t last year.’

Cooper Brouard director Matt Brouard agreed.

‘Last year was difficult, especially the first six months,’ he said.

‘The second half of the year we saw improved numbers and ended the year busy, even into Christmas. We have a number of sales completing in January which bodes well for 2025.’

He added the open market had been particularly buoyant during this period.

‘This has seen considerable improvement. A Labour government does tend to mean an increase in people moving here, and whatever your political hue, I think the jury is still out on how they will influence the economy.’

Mr Leslie said that buyers had started to realise there was quite a lot of options in the market.

‘Buyers have had the opportunity to pick and choose the stock that they want, and I think that that was probably the change in the second half of the year.

‘My concern is if we do see reductions in interest rates it is going to be due to economic restrictions, rather than any other event that perhaps could see additional funds pumped into the economy. And that obviously will have a bearing on the market.’