Premium property market update Q1 2025: Insights for buyers & sellers
At By Design, we’re committed to keeping you informed about the trends shaping the UK’s luxury property market. The first quarter of 2025 has been especially dynamic, with significant policy changes, economic updates, and evolving buyer and seller behaviours. Here’s what you need to know if you’re considering buying or selling your home this year.
The market at a glance
Despite the uncertainty surrounding the March stamp duty deadline, the £1 million+ market has shown remarkable resilience. Buyers and sellers alike have pressed ahead with their plans, demonstrating confidence in the long-term value of premium property.
Key highlights from Q1 2025
Properties for Sale:
- 9.8% higher than Q1 2024
- Highest levels of availability since 2013
- Balanced supply and demand, creating stable conditions
New Listings:
- Up 5.3% year-on-year
- 50.5% more than Q4 2024
- Record average asking prices, reflecting strong seller confidence
Sales Agreed:
- Nearly 10% more than Q1 2024
- 5.2% higher than Q4 2024
- Buyers motivated by greater choice and lower interest rates
Mortgage Approvals:
- 8.3% up year-on-year
- Only 2.5% below the 10-year average, despite higher rates
Transactions:
- 28.7% higher than Q1 2024
- 13.8% increase month-on-month
- 15.8% above the 12-month average
This robust activity reflects a market where both buyers and sellers are taking advantage of favourable conditions and making strategic moves.
Navigating a competitive market
With more properties available and buyers enjoying increased choice, pricing and presentation are more important than ever. The data shows:
Price Reductions:
- Up 37.6% compared to Q1 2024
- Sellers must price accurately from the outset to attract serious buyers
Withdrawals & Fall-Throughs:
- Withdrawals are up year-on-year but down from Q4 2024, suggesting sellers are committed
- Fall-through rates have increased, but proactive steps—like using reservation agreements—can help reduce these risks
If you’re selling, ensure your home is presented impeccably and marketed by an experienced agent who understands the nuances of the premium sector. For buyers, this is an excellent time to explore the market, but be ready to act quickly when you find the right property.
The influence of global wealth
According to the latest Knight Frank Wealth Report, the global population of ultra-high-net-worth individuals (those with assets over $10 million) grew by 4.4% in 2024. Many are looking to expand their residential property portfolios, providing further support for the UK luxury market.
Currency movements: An opportunity for international buyers
March saw significant shifts in global currency markets, impacting purchasing power for international buyers. If you’re considering a cross-border transaction, now may be an opportune time to act—or to seek advice on how to maximise your budget.
Smart strategies for sellers
Recent research shows that most sellers only list their property after finding their next home. At By Design, we offer a bespoke service—helping you secure your dream property and, in turn, positioning your current home for a successful sale. This proactive approach often uncovers off-market opportunities and ensures a seamless transition.
Looking ahead
Despite broader economic concerns, confidence in the UK luxury property market remains high. Activity levels in Q1 2025 have been strong, and the market continues to reward those who are well-prepared and well-advised.
If you’re considering buying or selling a luxury home, now is an excellent time to make your move. Our team at By Design is here to guide you through every step, ensuring you achieve the best possible outcome in this dynamic market.
Ready to discuss your next move?
Contact By Design for a confidential consultation and discover how our tailored approach can help you achieve your property goals.
For further insights or to arrange a private viewing, get in touch with our expert team today.
Credit: Simon Gates at Opening The Gates
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