Resilient housing market offers opportunities – Fine & Country

Rising buyer confidence is offering opportunities for estate agents, albeit with challenges in pricing and affordability says Interim Managing Director of Fine & Country, Jonathan Handford (pictured).

Handford says that despite economic headwinds, the housing market is demonstrating remarkable resilience, with house prices rising 4.7% year-on-year to an average of £269,426 in December, the strongest growth since late 2022.

Cautious prime buyers

He cautions, though, against over-optimism in 2025: “While the market is strong, realistic pricing is essential. Properties that are priced correctly continue to attract buyer interest, even in challenging economic conditions.”

Buyers in the prime markets of England and Wales, where prices fell last year, are particularly cautious.

“There are a number of aspects at play that are having an impact on the prime sector, such as the new stamp duty surcharge, changes to non-dom status and the higher interest rate environment.”

“Agents operating in these segments must emphasise the unique value propositions of their listings to maintain momentum.”

And, even though economists are predicting base rate cuts are on the horizon for 2025, affordability remains a key concern, according to Handford.

He advises that: “Estate agents must work closely with clients to ensure properties are marketed effectively in this environment. For buyers, clarity on financing options is essential to build confidence and drive decisions.”

With buyer confidence recovering, we’re seeing more transactions being agreed.”

The good news, he adds, is that the sales pipeline has strengthened significantly, with 283,000 transactions worth £104 billion progressing into the first half of 2025. Mortgage approvals in November 2024 were up 31% year-on-year, and new buyer demand rose by 13% (Rightmove figs).

Encouraging signs

“This is an encouraging sign for agents,” Handford says. “The increase in homes available for sale has improved choice, and with buyer confidence recovering, we’re seeing more transactions being agreed. The next challenge will be ensuring these sales move smoothly to completion.”

And Handford concludes: “Agents have a pivotal role to play in guiding clients through this complex landscape, whether it’s navigating mortgage constraints, ensuring realistic valuations, or highlighting the benefits of specific properties, estate agents’ expertise will be critical in maintaining the market’s momentum.”