January's Premium Property Market Update

The first month of the year tends to give an indication as to how the rest of the year will play out and January saw increased stock levels, a rise in sales, and a surge in price reductions, indicating a more dynamic landscape for both buyers and sellers alike.

The number of properties for sale in January 2025 were up 14.87% year on year and 34% higher than the six-year average.

This indicates that sellers at the higher end of the market are more active, deciding now is a good time to sell and benefit from market growth or it could perhaps be due to changing financial circumstances and tax implications that have been widely reported.

Buyers do now have more choice and this could put downward pressure on prices if demand does not keep up with the increased supply.

New listings entering the market in January were 7.48% higher year on year and 31.73% up on the six-year average.

This influx of new stock does suggest the confidence in selling at the premium end of the market continues to grow and this confidence seen by sellers has been matched by purchasers with the number of sales agreed in January 17.76% up year on year and 20.85% on the six-year average.

More choice and interest rate stability has helped premium purchasers commit to purchases and the significant increase in price reductions has also attracted the cost conscious buyers who are nervous of overpaying for a property.

Price reductions in January were up 56% year on year and a whopping 86.62% on the six-year average suggesting that sellers are realising the need to adjust their pricing expectations.

Buyers are becoming more discerning and it is clear that overpricing at initial launch is likely going to lead to properties needing reductions to generate interest.

However, the number of properties being withdrawn from the market was 13.87% higher year on year and 33.73% higher than the six-year average.

This suggests that some sellers are not achieving their desired prices and rather than reduce their asking price some are pulling their property off the market instead.

It may indicate that some premium property owners prefer to wait for better conditions rather than selling at what they perceive as a discount.

Withdrawals typically increase when buyers hold more negotiating power and as there are considerably more properties to choose from, this would give buyers more room to negotiate and help to explain why sellers are withdrawing from the market.

The number of fall-throughs has seen a sharp rise with a 37.46% year on year increase and 36.97% rise on the six-year average.

A higher number of sales being agreed is going to mean there will be a higher number of sales that fall-through, but because properties are still taking longer to sell, more price reductions are happening, and getting from SSTC to completion is taking an average of 151 days is a negative combination that leads to a much higher chance of a sale falling through.

The unrealistic expectations of buyers and sellers would also not help the current increase of fall-throughs with 82% of homemovers expecting it to take less than three months to go from under to completion, but only 43% actually achieving this.

The extra number of properties reducing their asking price, sales falling through, and withdrawing from the market would help to explain the 26.91% year on year rise and 46.89% increase for sellers returning to the market and trying their luck again.

The premium property market is balanced right now, but is shifting to a more buyer-favourable market with sellers having to adjust expectations, leading to more price reductions and withdrawals.

Buyers have better negotiating power right now due to higher levels of stock on the market and are willing to transact at the right price, but only if they see value in a property.

The increased choice means there is less urgency in decisions making from buyers and this is why it’s so important that sellers price accordingly from the outset as it’s clear that there is definitely demand for correctly priced properties judging by the higher number of sales being agreed.

Whilst sales volumes are in a healthy place, the number of fall-throughs suggests uncertainty in the market, so clear communication and management of expectations for all involved is crucial to ensure the process runs smoothly. 

It is quite clear from the latest data where one particular opportunity is right now in the market and that is to target those properties currently sitting unsold with other agents or those that have withdrawn from the market in recent months.

I say this because there are more properties for sale, they are taking longer to sell, an increase in price reductions, a rise in fall-throughs, withdrawals are higher, and the number of sellers returning to the market continues to grow.

If there are a higher number of properties for sale this equals more competition for sellers and increases the likelihood of finding a buyer taking longer, the asking price needing to be reduced, or a sale falling through.

All of these things will make it a lot more likely that a property will withdraw from the market and the data is evidence that these sellers are then trying again in the near future with a new agent judging by the rise of properties being relisted.

There have been some reports on social media in recent months that the number of properties selling with the second agent is actually only in single digits rather than the 50% that had been reported previously and it’s now being argued that this is not an effective strategy.

Don’t get me wrong, I’m the biggest of advocates for being the first agent through the door and getting uncontested business from off-market prospecting.

I have one agent I work with who has recently booked three meetings from sending out two hundred off-market letters with an average value of approximately £950,000. 

However, being the data geek that I am, I’ve done my own research of the most recently completed sales and properties that have gone under offer or SSTC and the results highlighted that approximately 24% of properties are being sold after switching estate agents. 

One estate agent that I have started working with recently has booked 5 meetings with sellers from sending 100 highly targeted letters to properties that have been withdrawn from the market. 

The biggest reasons for changing estate agents according to surveys of thousands of sellers that did make the switch are lack of viewings, poor communication, taking too long to sell, not doing enough to promote the property, reducing the price, and a sale falling through.

Use these insights when you consider which properties to target and what type of message you are going to send that will increase the chances of getting a response from the seller. 

I would also be highlighting that at the time of writing in mid February, it is a great time to promote the fact that changing estate agents could be the right thing for a seller, because according to Rightmove, listing your home in February and March gives you the highest chance of selling and in the fastest time as well.

This is most probably due to the fact that Rightmove research has found the highest number of enquiries to estate agents happen at this time of year, more buyers are looking to move in March than any month, and there is less competition between sellers due to many waiting for Spring to be in full swing with the clocks changing, the flowers being out, and the sun shining before they start considering listing their homes for sale.  

July through to August are typically the months of the year with the highest number of properties for sale and competition between sellers due to properties going on the market in the Spring months and perhaps leaving it too late to list their home.

Changing estate agents now would mean a fresh listing with a brand new date stamp on it, notifications going out via the portals to motivated buyers, and if it was a property that had been reduced previously or comes on at a new price it will not have the tag of damaged goods attached to it that a price reduction can have. 

Now is a great opportunity to target the low hanging fruit and take an unfair share of your market whilst others are waiting in the wings.

It’s now so easy to use automated systems to target properties that are for sale, so don’t just send generic letters like everyone else in your market and think outside of the box when trying to entice sellers to switch estate agents. 

Thank you for reading the latest edition of this blog and watch out for a huge episode of Opening The Gates To More Listings dropping next month with one of the highest profile names in the Prime and Super Prime end of the market. 

There are also some other big episodes launching in March which you will not want to miss, so be sure to hit the subscribe button to be notified when they go live. 

P.S. You can listen to one of my latest podcast episodes with fellow blog contributor Simon Leadbetter on Apple or Spotify where we discuss part one of The Voice of the Agent 2025 and some of the really interesting findings for the higher end of the market.

P.P.S. Please do read part one of The Voice of the Agent 2025 as the insights are fascinating and it will also highlight to you just how lucrative the premium property market really is!