Buyer demand fell by 2.7% year-on-year in October, but the figures reflect ‘a temporary blip’ caused by exceptionally high activity in 2024, according to the latest data from TwentyEA.
Falling interest rates in October last year triggered a rush of transactions ahead of the 30 October budget, TwentyEA pointed out, but the current demand/supply ratio remains high, at 72.4%.
The supply of new homes listed for sale has surpassed 1.5 million so far this year, with sales in excess of one million, the property data company said.
“All eyes within the property sector are now firmly fixed on the budget on 26 November, with agents wondering how new policies may impact both housing supply and buyer demand in the coming months.
For now, both continue to remain resilient and were higher than last year, up by 3.3% and 4.1% respectively at the end of October.”
The number of properties reducing the asking price to secure a sale has risen dramatically – up 14% compared to the same period last year, and exceeding one million so far this year. Inner London ‘is by far the worst affected region of the UK’, TwentyEA said.
Overall, executive director Katy Billany said the data paints a picture of resilient supply and demand, with demand set to increase further following the upcoming budget.
She added:
“With more homes on the market, motivated sellers are adjusting their expectations and offering more competitive pricing, leading to increased levels of price reductions, now more than one million so far this year.
“At this point, all eyes are focussed on the chancellor’s budget, which obviously falls much later than usual, to see what policy changes may emerge. Any measures that boost affordability or encourage transactions will help sustain the positive momentum we’ve seen across most regions throughout 2025.”
