Q1 2025 Premium Property Market Update

What an eventful first quarter of the year it has been with stamp duty deadlines, the spring statement, the Office for Budget Responsibility latest report, a cut to the base rate, plus not forgetting trade negotiations and tariffs. 

Despite the stamp duty deadline at the end of March causing uncertainty across the whole market, the premium market has performed very positively in Q1 and perhaps is evidence of the fact buyers and sellers knew this deadline was coming well in advance and plenty of movers were prepared to just crack on with their moving plans even with higher stamp duty costs.

9.78% up on Q1 2024

8.57% down on Q4 2024

31.17% up on Q1 Average

The number of properties available is at its highest level since March 2013 and you can see from the figures above that the premium market is following suit, but there is not an oversupply of sellers entering the market with the number down on Q4 2024.

The even balance between supply and demand is a good sign for the market as it brings more stable conditions, which are conducive for strong market activity. 

5.31% up on Q1 2024

50.54% up on Q4 2024

30.07% up on Q1 Average

All the uncertainty is not deterring new sellers from hitting the market and the latest Rightmove House Price Index reported the average asking price of new homes listed is a new record and the first monthly price record since May 2024, highlighting that both sellers and estate agents have confidence in the market ahead. 

38.94% up on Q1 2024

84.12% up on Q4 2024

41.78% up on Q1 Average

The number of sellers deciding to relist their property continues to rise and is further proof that homeowners have a very positive outlook for the market right now compared to a couple of years ago.

9.79% up on Q1 2024

5.23% up on Q4 2024

12.71% up on Q1 Average

Properties going under offer were almost 10% up on last year as buyers took action with more choice available to them and the benefit of lower interest rates incentivising them to make a move in the market. 

You will see this reaffirmed by the positive mortgage approval transaction data below. 

February saw a second month in a row that mortgage approvals dropped month-on-month, but it was only down 1.06% and was to be expected as some buyers sat on their hands over the past two months to see if there were any surprises in the spring statement that might impact their moving plans.

However, they were still 8.26% up year-on-year and 2.46% higher than the 12-month average, giving evidence that even with the stamp duty changes buyer demand is on the up compared to a year ago and this is a really positive sign for the market going forward.

Mortgage approvals are now only 2.52% below the 10-year average and when you consider how cheap interest rates were for seven of those ten years, this is clear evidence that average interest rates starting with a 4 are not a barrier to increased activity in the market.

New listings entering the market, the number of properties on the market, sales being agreed, mortgage approvals, and transaction numbers all point towards a very solid Q1 for the premium property market.

37.60% up on Q1 2024

27.70% up on Q4 2024

66.53% up on Q1 Average

Whilst I spoke earlier of the positivity in the market with record asking prices, I think this explains why the number of price reductions continues to rise as the gap between buyer and seller expectations widens.

Zoopla has also just reported that 48% of properties take longer than two months to find a buyer and those that reduce the asking price by 5% or more take twice as long to sell compared to those that price correctly from the outset.

With buyers having so much more choice, if they don’t see value for money, they will just keep on looking until a competitively priced property with a motivated seller comes along before they commit to a purchase. 

In a very price sensitive market, it’s vitally important to get the pricing strategy right from day one to have the best chance of selling.

13.60% up on Q1 2024

27.82% down on Q4 2024

29% up on Q1 Average

The number of properties withdrawing from the market has risen compared to Q1 last year and the Q1 average, but it is positive to see the number has gone down in comparison to the previous quarter, which again highlights confidence from sellers to stick with it rather than just taking their properties off the market if they’re not achieving their originally desired outcome. 

27.87% up on Q1 2024

6.44% up on Q4 2024

27.20% up on Q1 Average

I have mentioned in previous articles about the issues we face with increasing fall-through rates, and yes an increase in the number of sales agreed is going to cause this to happen, but there is so much that can be done to reduce these figures.

The fall-through rate in Q1 2025 was 23.92% and I know of many agents that have single digit fall-through rates.

A lot of these agents use Gazeal reservation agreements and I would strongly recommend using them if you are not already doing so.

It is also a great way to stand out in the market and differentiate yourself from the competition. 

Price changes, withdrawal numbers, and fall-throughs highlight that the market is finely balanced and if sellers do not get their asking price, presentation, promotion, and choice of agent spot on, they will struggle in this market.

Latest findings from The Wealth Report by Knight Frank released in March, pointed towards strong continued demand, with the global UHNWI (individuals worth over US$10 Million) population growing by 4.4% through 2024, led by North America with a 5.2% increase over the year. 

The report also confirmed continued demand for residential property from wealthy buyers, with 25% of global family offices managing private residential portfolios confirming their plans to expand their holdings over the next 18 months.

The rising wealth of the UHNWI and their plans to invest in residential property is a clear vote of confidence for the UK property market and will certainly go some way in explaining why the premium market has continued to perform so well, despite the uncertain political economic climate. 

Here is my top tip to get the most out of the premium market in Q2.  

According to Hamptons, the share of homes in Great Britain bought by a mover (someone both buying and selling at the same time) was 56% in Q1 2025 and the 2024 Property Academy Home Moving Trends survey highlighted that 74% of sellers put their property on the market after they had found another property.

Therefore, stop offering free valuations and start offering a VIP buyer service, because if you find someone their next home you are significantly increasing your chances of winning the listing of their property as well.

I would have shared numerous case studies previously of agents I work with that have got phenomenal results by offering a VIP buyer service where they target properties that are not yet on the market on behalf of potential buyers they are working with. 

A client I work with did exactly this recently with a buyer they were working with who was struggling to find what they were looking for on the property portals and after sending out 176 VIP buyer letters, they got four responses totaling £20,000,000 worth of property.

Look after your buyers and they will find you your next sellers.

Remember, prospecting works best when it feels like a service. 

Despite some negative economic news regarding the wider UK economy, the UK property market retains significant optimism.

Q1 activity levels have shown the UK premium property market just keeps ticking along, despite all the uncertainty as I reported last month for my February update.

We have been in a prolonged period of instability and insecurity, especially when one crisis seems to follow another with little or no time to recover in between, with one global issue to the next, whether it's pandemics, war, economic shocks, climate disasters, political turmoil, or social unrest.

The latest data has shown that If people want to make a move and can afford to do so, they appreciate investing in property for the long term is a very reliable asset amongst all the chaos and this very much appears to be the case for the higher end of the market as well. 

My next update going live in May will be reporting on April market activity to see if the stamp duty changes and Donald Trump tariffs have any impact on activity levels for the premium market.

Thanks as always for reading my monthly updates on the premium property market and I do hope my insights continue to deliver value. 

P.S. You can join 1,200+ other estate agents in my Facebook group, ‘Opening The Gates To More Listings For Estate Agents’ if you enjoy this content for more property market insights.