As we move into the final quarter of 2025, the property market continues to balance resilience with realism. Despite softer conditions, buyer demand remains steady, with applicant registrations up 2% on Q2 and 3% year on year.
However, seller confidence has dipped. Valuations and instructions both fell 9% and 11% respectively compared to Q2, while price reductions rose 24% year on year, showing that sellers must stay competitive to secure sales. Encouragingly, net sales have held level year on year, suggesting the market is adjusting rather than slowing.
Buyer Activity and Lending Conditions
The Bank of England reports a slight cooling in buyer activity, with mortgage approvals easing to 64,700 in August. Yet lending conditions are improving - the average mortgage rate fell for the sixth consecutive month to 4.26% and leading lenders such as HSBC and Santander are offering competitive five-year fixes starting from around 3.9%-4%.
These trends indicate that affordability and confidence could strengthen as we head into 2026.
Focus on Q4
With shorter days and more challenging weather ahead, presentation and customer experience will be crucial to converting viewings into sales. As Myles Butler, Assistant Manager for Residential Development, notes:
"Active buyers are shopping around, so strong site presentation and targeted incentives - such as Stamp Duty contributions - are key to securing commitments."
Uncertainty around potential tax changes in the Autumn Budget continues to weigh on sentiment, but the market remains adaptable. Realistic pricing and proactive sales strategies will be essential to maintain momentum into Q4.
Read the full Q3 Report Here: Market Update - Q3 2025.pdf
