With greater buyer confidence, a higher level of properties for sale and a strong sales pipeline, the sector currently offers excellent opportunities for estate agents, albeit with challenges in pricing and affordability, according to Jonathan Handford, interim managing director of Fine & Country.
Handford shared his insights on the current market landscape, underscoring the importance of realistic pricing and strategic positioning for agents in this dynamic environment.
Rightmove predicts new seller asking prices will rise by 4% in 2025, but Handford cautions against over-optimism: “While the market is strong, realistic pricing is essential. Properties that are priced correctly continue to attract buyer interest, even in challenging economic conditions.”
The prime markets of England and Wales faced headwinds, with average prices dipping 6.8% year-on-year to £1,173,152. Buyers in these higher-value markets remain cautious due to economic uncertainty.
“There are a number of aspects at play that are having an impact on the prime sector, such as the new stamp duty surcharge, changes to non-dom status and the higher interest rate environment,” noted Handford. “Agents operating in these segments must emphasise the unique value propositions of their listings to maintain momentum.”
“Affordability remains a key concern,” he added. “Estate agents must work closely with clients to ensure properties are marketed effectively in this environment. For buyers, clarity on financing options is essential to build confidence and drive decisions.”
Handford points to the fact that the sales pipeline has strengthened significantly for many estate agents, with 283,000 transactions worth £104bn progressing into the first half of 2025. Mortgage approvals in November 2024 were up 31% year-on-year, and new buyer demand rose by 13%, according to Rightmove.
“This is an encouraging sign for agents,” Handford observed. “The increase in homes available for sale has improved choice, and with buyer confidence recovering, we’re seeing more transactions being agreed. The next challenge will be ensuring these sales move smoothly to completion.”
The housing market’s recovery is further bolstered by a boost in activity ahead of the stamp duty deadline in late 2024, with sales agreed up 22% year-on-year.
For estate agents, the 2025 market presents opportunities to build on the recovery of 2024 while addressing challenges in pricing, affordability, and client expectations, according to Handford.
“Agents have a pivotal role to play in guiding clients through this complex landscape,” he added. “Whether it’s navigating mortgage constraints, ensuring realistic valuations, or highlighting the benefits of specific properties, estate agents’ expertise will be critical in maintaining the market’s momentum.”