The rental sector saw significant easing in supply pressures during 2025, with a near 10% increase in the volume of properties coming to let compared to 2024, according to data from TwentyEA.
Net migration likely drove much of this change. With existing residents leaving, previously occupied homes have been freed up, contributing to the rise in rental availability across the market and alleviating some of the strain in the rental sector.
The average let agreed price in 2025 stood at £1,495 per month, on par with 2024, although this figure derives from the type of rental stock available and location.
Outer London experienced the largest year-on-year increase in let agreed properties, rising 14.1%. Wales also emerged as an increasingly attractive rental location, experiencing 11.8% growth year-on-year. Northern Ireland was the only region to see a fall in lettings agreed, with a decline of 6.3% compared to 2024. Among major cities, Cardiff and Leeds led the way with a 12% increase in lets agreed year-on-year.
Sales
The sales market showed mixed performance throughout 2025. Exchanges finished the year at 986,665, nudging towards one million and 12.6% higher than 2024. Both new instructions and sales agreed volumes recorded modest year-on-year growth of 2.1% and 2.3%, respectively.
However, fall-throughs, price reductions, and withdrawn properties were all significantly higher than the prior year, reflective of a greater number of transactions and a softening of the market in Q4. The findings form part of the company's latest Property and Homemover Report.
Fall-throughs reached in excess of 300,000 throughout the year, 4.5% higher than in 2024. Price changes topped 1,000,000, an increase of 10.8%, and the number of withdrawn properties hit 803,612, a marked rise of 7.6%.
Katy Billany, executive director of TwentyEA, explained the dynamics behind the year's performance. "H1 25 enjoyed a strong level of transactions, supported by the Stamp Duty concession," she said. "At the start of the year, residential buyers still benefited from the temporary higher nil-rate threshold of £250,000, which reverted to £125,000 on 31st March 2025. Meanwhile, first-time buyers saw their nil-rate threshold return to £300,000 from £425,000."
The conclusion of stamp duty relief removed a key support for transactions, ultimately slowing activity. "We saw significant market softening in the latter part of 2025, driven by reduced consumer confidence ahead of the November Budget," Billany noted.
She added that further caution emerged in the premium market. "This was further reinforced by the announcement of a Mansion Tax on properties valued over £2million, due to take effect in April 2028, which has led to further high-end buyer caution in the premium market," she said. "Also, rising second-home council tax rates discouraged buyers from purchasing extra properties, slowing transactions in the top-end and holiday-home market."
