Matthew Henderson
Associate Director, Residential Research
Strutt & Parker anticipates that the housing market will see a return to transaction levels that have carried on through the latter half of 2024. Q1 2025 saw more than 338,000 transactions as buyers pushed to transact before stamp duty changes came into force at the start of April.
Strutt & Parker anticipates that the housing market will see a return to transaction levels that have carried on through the latter half of 2024. Q1 2025 saw more than 338,000 transactions as buyers pushed to transact before stamp duty changes came into force at the start of April. This caused a lull where sales fell dramatically in April and May, although June’s figures picked up by a third showing that these two low volume months are likely due to stamp duty changes and there is still demand in the market.
In Q2 the number of £1m+ transactions market in Prime Central London (PCL) grew slightly against a weak Q1. However, volumes against Q2 last year are down in the £1m to £5m price bracket. The top end of the market, £5m+, although flat against Q1, has seen 5% more sales than the first half of 2024.
“Prime properties have been transacting more slowly, and less regularly, than the more mainstream parts of the market. There are plenty of high-quality homes for sale but a shortage of buyers willing to pay asking prices. Homes are regularly selling only after a price reduction, with purchasers looking to get good value in what is a price sensitive buyers’ market” comments Matt Henderson, Head of Residential Research at Strutt & Parker.
“To sell a home in a timely fashion sellers need to price at a competitive level, accepting where the market is. Attractive family homes, priced reasonably, can attract multiple buyers to compete, leading the home to achieve above the asking price.”
“However, this is a rarity in the current market and homes that don’t garner immediate attention often take time to sell, then price reductions are then needed to gain attention. There is certainly an opportunity for buyers looking to secure a good deal, particularly those looking to purchase without selling – first-time buyers or those looking to acquire an additional property – or those planning to upsize.”
New let numbers for the second quarter look strong compared to two weak previous quarters, however Q2 2025 was 15% down on Q2 2024 in terms of volume let. This lack of volume came from the lower price points, new lets above £1,000pw are up 4%. The market in PCL remains dominated by flats making up 92% of new lets, with turnkey family homes the most under supplied. Houses now let for a greater pound-per-square-foot value than flats, uncharacteristic of greater square footage property.
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