Extra folks registered to purchase in Might 2025 than in any Might since 2021, suggesting that among the pent-up demand from the previous couple of years, helped by falling mortgage charges, continues to help strikes, in line with Hamptons.
The property company, a part of the Connells Group, report that there have been 3% extra candidates trying to purchase in Nice Britain in Might in comparison with the identical month final 12 months, up from a ten% year-on-year decline in April.
The year-on-year change within the variety of folks trying to purchase a house has returned to constructive territory following two months of decline after the tip of the stamp obligation vacation in March. There are actually 19% extra house-hunters trying to purchase than in Might 2019, which represents a typical pre-Covid 12 months.
Proprietor-occupiers, together with first-time patrons and upsizers, are main the rebound. In the meantime, there was a pointy fall in demand from second dwelling purchasers and traders. That is in response to current stamp obligation and council tax modifications.
The most important uplift got here from first-time patrons (up 4% year-on-year), which contrasts with an 18% decline within the variety of candidates searching for a second dwelling. Actually, the variety of second owners trying to purchase has fallen to its lowest degree since Might 2020 – the peak of the Covid-19 pandemic.
The rise in demand has been felt throughout the nation. The North West noticed the largest improve, with applicant numbers rising 9% year-on-year. The West Midlands (+7%) and London (+4%) adopted. The North East is the one area the place there have been fewer home hunters than final 12 months (-6%).
Falling mortgage charges, mixed with modifications to emphasize testing, have boosted patrons’ buying energy. That is notably true for first-time patrons with smaller deposits, because it’s these charges which have declined probably the most.
Share of properties offered at a +5% low cost under the ultimate asking value
| Might-24 | Might-25 | YoY | |
| East of England | 13% | 9% | -4% |
| Wales | 21% | 18% | -4% |
| North West | 14% | 11% | -3% |
| East Midlands | 13% | 10% | -3% |
| South East | 16% | 15% | -2% |
| West Midlands | 11% | 10% | -1% |
| South West | 14% | 14% | -1% |
| London | 15% | 16% | 1% |
| North East | 18% | 19% | 1% |
| Yorkshire and The Humber | 6% | 13% | 7% |
| Eng & Wales | 14% | 13% | -1% |
Supply: Hamptons
Consequently, costs are holding up. The common property in England and Wales offered for 99.0% of its ultimate asking value final month, up from 98.8% in Might 2024. Simply 12.8% of properties in England & Wales have been offered in Might for greater than 5% under their ultimate asking value, the bottom share since September 2022, simply earlier than the Conservatives’ mini-budget. Solely 3% of patrons managed to agree a +10% low cost final month.
The £1m+ market stays most delicate. That is the one value band the place patrons usually tend to obtain a +5% low cost than final 12 months. Almost one in three (32%) gross sales agreed over £1m have been offered for greater than 5% lower than their ultimate asking value in Might, the best proportion recorded in any Might since 2020. In the meantime, properties offered for between £500k and £1m, sometimes purchased by upsizers, noticed the largest decline in discounting.
Consumers within the East of England are least seemingly to have the ability to agree a reduction on their new dwelling. On this area, simply 9% of patrons in Might had a proposal accepted at the very least 5% under the asking value, down from 13% in Might 2024. In the meantime, 19% of patrons within the North East achieved a +5% low cost.
Though demand has picked up over the past month, inventory ranges stay excessive. There are 4% extra properties in the marketplace throughout Nice Britain than in Might 2024, and 41% greater than in Might 2019. This offers patrons extra alternative, but in addition means properties are taking longer to promote.
The common dwelling in Nice Britain that went beneath supply in Might had been in the marketplace for 54 days, up from 48 days for the everyday dwelling that offered in Might 2024. Just below a 3rd (31%) of properties offered in Nice Britain final month went beneath supply inside 30 days, the bottom proportion recorded in any Might since 2020.
Properties offered over £1m recorded the largest improve within the size of time in the marketplace. The common £1m dwelling offered in Might got here onto the market 56 days earlier, 11 days longer than in Might 2024. In the meantime, properties beneath £1m noticed a 6-day improve, averaging 54 days.
In a reversal of the development seen between 2016 and 2024, London properties usually tend to go beneath supply inside a month than the Nice Britain common. 32% of properties within the capital offered inside a month in Might. London is one in all solely two areas the place there are fewer properties in the stores than final 12 months, with inventory ranges down 12% year-on-year.
Scotland stays the quickest area to promote. Over half (54%) of properties offered in Scotland final month went beneath supply inside 30 days, up from 50% in Might 2024. The common dwelling right here went beneath supply inside 28 days, half the Nice Britain common (54 days).
Share of properties promoting inside 30 days by area
| % of properties promoting inside 30 days | Median. no of days between instruction & supply accepted | |||
| Might-24 | Might-25 | YoY change | ||
| Scotland | 50% | 54% | 4% | 28 |
| West Midlands | 34% | 35% | 1% | 51 |
| North West | 39% | 35% | -4% | 49 |
| London | 34% | 32% | -2% | 52 |
| Yorkshire & The Humber | 41% | 32% | -9% | 44 |
| East Midlands | 34% | 29% | -5% | 61 |
| East of England | 29% | 25% | -4% | 59 |
| Wales | 31% | 25% | -6% | 68 |
| North East | 31% | 25% | -6% | 62 |
| South West | 27% | 23% | -4% | 65 |
| South East | 33% | 22% | -11% | 77 |
| Nice Britain | 36% | 31% | -5% | 54 |
Supply: Hamptons
Aneisha Beveridge, Head of Analysis at Hamptons, stated: “The post-stamp obligation vacation lull has confirmed to be short-lived, with year-on-year modifications in purchaser demand returning to constructive territory in Might. Falling mortgage charges have considerably boosted patrons’ buying energy, generally offsetting the rise in stamp obligation payments they now face. First-time patrons have been probably the most important beneficiaries, with excessive LTV mortgage charges seeing probably the most substantial falls, alongside extra beneficial affordability assessments from lenders.
“Nevertheless, prime markets stay tentative. These sometimes discretionary sellers are prepared to attend for costs to get well and are much less ready to promote at any value. In consequence, solely 27% of properties bought for over £1m a decade in the past have since been offered, in comparison with 40% of all properties throughout the nation. The London restoration is primarily pushed by its extra reasonably priced suburbs, fairly than Prime Central London the place potential sellers run a better danger of getting to promote their properties for lower than they purchased them for. This considerably dampens their urge for food to maneuver and makes them far much less receptive to low affords.”
