The number of prospective buyers signing up with estate agencies and property viewing numbers rose in January as people got ahead of the stamp duty changes, analysis showed.
The Propertymark Housing Insight Report for January showed the average number of buyers registering with estate agencies increased to 87.
At the same time, each available home had two-and-a-half viewings on average, up from one-and-a-half the month before.
Activity set to taper off
Nathan Emerson, CEO of Propertymark, said: “As widely expected, January 2025 saw an uplift in activity in the sales market, due mainly to the stamp duty thresholds changing, requiring many homeowners completing from April onwards to pay more tax in England and Northern Ireland.
“It will be interesting to see how the dust settles within the sales market as we move closer to that deadline. Indeed, we are likely to witness this spike in activity tail off. However, people continue to adapt to market conditions, and for those who are factoring in this additional cost, their home move plans may remain unchanged.”
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Possible rise in future housing stock
There were an average of 10-and-a-half properties placed for sale at each estate agency member branch in January, up on 7.8 in December. However, stock levels decreased month-on-month from 46 per branch to 43.
Market appraisals, which help to indicate future supply, rose from 15 in December to 25 in January.
Propertymark recorded a drop in the number of sales agreed per branch during the month, but the firm said this was within the parameters of normal seasonal trends.
According to its members, 12% of homes sold for less than the asking price, a slight dip on the share of 16% in December.
The time taken to exchange was still lengthy, at 17 weeks on average. Propertymark said there were signs this was speeding up, but it still remained “challenging and high”.
Tenant demand climbs
Propertymark noted a marked rise in rental demand in January, picking up from an average of 79 prospective tenants registering per branch in December to 115 in January.
Coinciding with this was another increase in the average number of new rental property instructions per branch, as well as a marginal rise in the amount of stock at each branch, which went up from 12 in December to 12.3 in January.
Tenant demand still outstripped rental supply, as the report showed there were an average of nine prospective tenants for each available property. This compared to seven in December.
The number of tenancies agreed increased from an average of seven to eight.
Emerson added: “For the private rental market, pressures remain, and the age-old story continues of demand levels increasing against a slowing backdrop of supply.
“We know that without government support for landlords to continue in the market or for future investors to enter, many may take their investment capability elsewhere or sell up altogether, worsening the ever-widening gap and ultimately pushing up rents even further.”
