New instructions and sales agreed rise as market steadies
Residential property market activity in England and Wales showed modest growth in the third quarter of 2025, with both new instructions and sales agreed surpassing levels seen in the same period last year, according to new data from property analytics firm TwentyCi.
The figures reveal that the supply of new instructions increased by 1.7% compared with Q3 2024, while the volume of sales agreed rose by 3.2%.
The earlier dip in exchanges, which followed a rush to complete transactions ahead of Stamp Duty changes in the first quarter, has now corrected, bringing overall activity broadly in line with last year.
Price reductions remain a prominent feature of the market. So far in 2025, there have been 919,000 price reductions, the highest number on record and 16% higher than the previous year. In total, 38.7% of completed listings have involved at least one price cut, with the trend most pronounced among properties valued above £1 million, where the rate of reductions increased by 3.1%.
Regionally, the rate of price reductions is easing in the North but rising in London and the South. Inner London has experienced a 3.0 percentage point increase, making it the weakest-performing region for price changes.
Meanwhile, fall-through rates have risen again, up 0.5% year-on-year to exceed 82,000.
“With 82,000 sales falling through in Q3 alone, we’re fully behind the government’s push to shake up the homebuying process,” said Katy Billany (pictured right), executive director at TwentyCi. “Waiting four months just to exchange contracts is far too long, no wonder buyers get cold feet, or unexpected issues crop up in surveys. A bit more upfront info at the start could really help smooth things out. As we head into the final stretch of the year, we’re cautiously optimistic.”
The report also highlights a notable shift in off-market transactions. Over the three-year period from 2022 to 2024, 15.8% of residential properties changed hands off-market, but this proportion fell sharply in 2024 to 11.4%, down from 17.8% in 2022 and 17.2% in 2023.
“This year-on-year contraction points to a structural market recalibration,” Billany said. “Supply grew by 10% in 2024 compared with 2023, alongside successive interest rate reductions, encouraging more sellers to come forward,” Billany said. “In a buyers’ market, sellers need a full marketing package, professional photography, portal listings, and active promotion to secure a sale.”
Further analysis found that off-market sales are far more common above the £1 million price point, accounting for 20.1% of transactions, compared with just 6.7% for properties below that threshold. High-value sales tend to prioritise discretion and privacy, while sellers of lower-value homes typically seek wider exposure to attract buyers.
“In a market where the average time to go SSTC now stands at 77 days – the longest in the past five years – sellers of homes under £1 million should question whether the off-market approach puts them in the best position to secure a sale,” Billany said.
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