What Is the Property Market Like in the Last 3 Months of the Year?
The last few months of the year are traditionally an interesting period for the UK property market. For buyers and sellers alike, it’s often a season of contrasts: while some buyers are keen to secure a move before Christmas or early in the new year, others prefer to wait until spring, traditionally the busiest season for housing activity.
In 2025, these seasonal patterns are playing out against a backdrop of higher borrowing costs, economic uncertainty, and shifting demand across regions. So, what has the market really looked like in the last quarter of the year? Let’s break it down.
The Big Picture: Cooling but Not Collapsing
House price growth across the UK has been slowing, but not falling off a cliff. Government data from the UK House Price Index shows that by July 2025, the annual growth rate was about 2.8%, leaving the average house price around £270,000. This represents a clear moderation compared to the stronger growth seen in previous years.
Month-on-month changes have also been small, often in the range of 0% to 0.5%, depending on the region. This shows the market has entered a period of stability rather than steep falls.
Seasonal Slowdown Meets Economic Pressures
The last three months of the year often bring a natural slowdown. Families tend to put moving plans on hold during the run-up to Christmas, while sellers may delay listing until January when demand usually picks up. In 2025, this seasonal lull has been amplified by:
Higher mortgage rates: Monthly repayments are much steeper compared to just two years ago, meaning many buyers are pausing until affordability improves.
Cost-of-living concerns: Energy bills, food prices, and general inflation are squeezing disposable incomes. Buyers are more cautious and deliberate.
Uncertainty around tax policy: Talk of reforming property taxes has unsettled the higher-end market, with some buyers and sellers holding off until clearer rules are announced.
Buyer Behaviour: More Selective, Less Rushed
Compared to the frenzied pandemic years, today’s buyers are far more measured. Instead of rushing into sealed bids, many are taking their time to negotiate.
Key trends include:
Demand for energy-efficient homes: With higher utility costs, buyers are paying close attention to EPC ratings. Homes with poor energy performance are harder to sell unless discounted.
Shift to value-driven choices: Commuter towns and suburban areas with good transport links remain popular, especially for families.
First-time buyers holding back: Rising mortgage costs have priced many out of the market, leading to reduced demand at the entry level.
Sellers: Needing to Be Realistic
Sellers who remain optimistic with their asking prices are finding properties linger on the market. Buyers have more choice and less urgency, meaning realistic pricing is essential. Those who price strategically are still finding buyers, though negotiations are tougher than they were a year ago.
Well-presented homes in desirable areas are selling — but bidding wars are now the exception rather than the rule.
The High-End Market: Under Pressure
The £500,000+ segment of the market has slowed significantly. Reports suggest wealthy buyers are waiting to see how potential property tax reforms and stamp duty changes play out. Estate agents in London and the South East are noticing longer selling times and more withdrawn listings in this part of the market.
What’s Next for the Market?
Looking into the new year, a few factors will shape the market:
Interest Rate Policy – If the Bank of England begins to reduce rates, even modestly, affordability will improve, which could unlock demand.
Government Announcements – Any reforms around stamp duty or property taxes will have an immediate effect, especially in higher-value areas.
Economic Confidence – If inflation continues to ease and wages grow, the market could stabilise further. If the opposite happens, we may see more caution.
Supply vs Demand – Limited housing supply has been a key reason prices haven’t dropped sharply. If more stock comes onto the market, buyers may have more negotiating power.
Final Thoughts
The last three months of the year have shown a property market in transition: not booming, not crashing, but finding its footing in a more cautious, affordability-driven environment. For buyers, this can mean opportunities to negotiate better deals. For sellers, success will come from realistic pricing and flexibility.
Overall, while the market is quieter heading into year-end, it remains resilient. The new year will likely bring renewed activity — but much depends on interest rates, government policy, and how confident households feel about their finances. Want an award-winning team to help finding the best decision for you? Give us a call on 0121 681 6327.