Following the recent changes to stamp duty in April 2025, the UK property market is showing signs of healthy adjustment and renewed buyer opportunity.
With over 100,000 asking price reductions recorded in April up 20.6% year on year buyers are now enjoying more favorable entry points into the market, particularly in high demand areas like the South East. Homes priced between £1 million and £2 million have become more competitively priced, helping to stimulate interest at the upper end. Encouragingly, this recalibration hasn’t dampened demand, with 437,000 sales agreed so far in 2025, a 7.1% increase from last year. The market’s response reflects greater realism among sellers and a positive shift towards a more balanced and accessible housing landscape.
Rightmove's Latest House Price Index Report Shows
In May 2025, the UK property market demonstrated resilience despite a modest 0.6% increase in average asking prices, reaching a record high of £379,517. This growth, the smallest for May since 2016, reflects a decade high inventory of homes, offering buyers enhanced choice and negotiating leverage. Industry experts, including Jeremy Leaf and Tom Bill from Knight Frank, noted that while the market faces short-term downward pressure due to increased supply and buyer hesitancy, improved mortgage products and a stabilising interest rate environment are expected to bolster demand in the latter half of the year. David Johnson observed a resurgence in buyer activity post bank holidays, particularly for one and two bedroom apartments and family homes in commuter areas. Sellers who price realistically are achieving quicker sales, indicating a market that rewards informed pricing strategies. Overall, while challenges persist, the market's adaptability and the influx of new listings present opportunities for both buyers and sellers.
Opportunity Knocks: First Time Buyers Urged to Seize Advantage Amid Changing Market
While first time buyers currently make up less than 20% of property viewings, this shift signals a unique window of opportunity for those looking to step onto the property ladder. With reduced competition and increased housing stock following the recent stamp duty changes, aspiring homeowners are now in a stronger position to negotiate and secure better deals. Industry experts highlight that the most popular properties, two bedroom homes priced between £201,000 and £300,000 are becoming more accessible. Forward thinking agents and developers are also calling for targeted government support, including higher loan to value mortgage options and 5% deposit schemes, which could soon make homeownership a reality for more buyers. For savvy first timers, the current lull presents a prime moment to act before broader buyer confidence rebounds.
If you have any questions about the property market or are looking sell, let or buy a property in the Bromley get in touch, we will be delighted to help you.