More than 140,000 properties were listed for sale in January, the highest number recorded in a decade, according to data from TwentyEA. The figures showed that supply was 7.3% higher than January 2024, with all price bands experiencing growth. The strongest rise of 12% was seen in the £350,000 to £1m bracket. Inner London and the East Midlands led regional growth with an 11.3% year-on-year increase.
In terms of demand, nearly 100,000 sales were agreed in January 2025, marking the highest level since January 2021 and a 17.1% rise compared to January 2024. All UK regions saw an increase in sales agreed except for Northern Ireland. The East Midlands (27.2%) and the East of England (26.8%) saw the strongest growth, with the £350,000 to £1m price bracket seeing the largest year-on-year increase at 28%, followed by £200,000 to £350,000 at 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.”
The average original instruction price in January fell by 0.6% compared to the previous year but has risen by 24% since 2019. Instruction prices increased in the North and Midlands, while prices in the south remained static or declined. The North East saw the largest year-on-year increase at 9.9%, while Inner London was the only region where prices fell by more than 1%, with a decline of 13.9%.
Price reductions remain a key feature of the property market, with more than 93,000 reductions recorded in January 2025—the highest number on record. In January, 38.5% of concluded listings had at least one price reduction, slightly higher than the 36.6% recorded in January 2024.
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.”
The time to sell in January 2025 increased to an average of 90 days, the longest period recorded in six years and a 7.6% increase from January 2024, when it was 83 days. The trend affected every price bracket, with properties priced at £1m or more taking an average of 127 days to sell. Most UK regions saw an increase in time to sell, except for Northern Ireland and the North East. The South East saw the largest year-on-year increase at 14%, adding 11 days to the average selling time.
