Market Update, May 2025: Spring Awakening or Market Recalibration?

As we move into late spring, the prime property market finds itself at a crucial turning point. The end of the Stamp Duty Land Tax (SDLT) relief on 31st March triggered a surge in transactions, with buyers pushing hard to complete before the deadline. HMRC data shows a 104% year-on-year increase in completions during March, a clear sign that urgency was front of mind for many.

But now the dust has settled. April has ushered in a noticeable shift in tempo. Listings are up by 15% across the UK, yet buyer demand has remained consistent but hasn't matched the growth in supply, rising by just 1%. Over 104,000 sellers dropped their asking prices in April alone, marking a new record. This is no longer a market where aspirational pricing is tolerated. It’s become far more price-sensitive than it has been in recent years.

“We’re pleased to be seeing a rise in upper-quartile properties coming to the market, but make no mistake, this is a more discerning, data-driven marketplace,” says Ross D’Aniello, CEO of Chartwell Noble. “Vendors who want to sell must resist being swayed by bold promises and inflated valuations. Now more than ever, trustworthy and experienced agents are the key to a successful outcome.”

A Welcome Cut to Interest Rates

Adding complexity to the mix, the Bank of England reduced the base rate to 4.25% in early May. It’s the second cut of 2025 and a sign that monetary policy is pivoting toward supporting growth amid global headwinds.

Lenders have already responded; Barclays, HSBC and Nationwide have all trimmed fixed-rate deals, with two-year fixes now available from 3.75% and five-year fixes from 3.83%. This is welcome news for those buying in the higher price brackets, who typically deal with larger mortgages and stand to benefit most from improved affordability.

What This Means for the Prime Property Market

While the broader market recalibrates, the upper quartile is showing encouraging signs of resilience. Zoopla reports that sales agreed are up 6% year-on-year, and average UK house prices are still tracking 1.6% higher than a year ago. Importantly, the recent relaxation in mortgage affordability stress testing could lift buyers' borrowing potential by as much as 20%.

Yet this is no time for complacency.

“This is a market that rewards bold decisions,” adds Ross. “Well-presented homes, priced accurately and marketed expertly, are still achieving strong outcomes. But those chasing yesterday’s headlines or choosing agents based on who tells them the highest figure? That’s where disappointment creeps in.”

Advice for Sellers: Precision Over Optimism

If you’re considering a move in 2025, the key takeaway is clear: ambition is good, but it must be grounded in realism. Don’t be tempted by inflated valuations or flashy marketing without substance. The market is watching, and buyers are increasingly well-informed.

“At Chartwell Noble, we pride ourselves on giving honest, evidence-based advice. We’d rather lose an instruction than overpromise and underdeliver. It’s this integrity that wins trust and ultimately, results,” says Ross. "Those who take a sober approach are achieving excellent results."

In Summary

• The end of the SDLT deadline drove a short-term spike in transactions.

• April saw a cooling effect with price reductions rising across the board.

• Interest rates have been cut, offering a boost to upper-end buyers.

• The market is now more price-sensitive and value-driven.

• Sellers must choose experienced agents who combine honesty with strategic advice.

As ever, we’re here to help clients navigate these changes with confidence.

If you’re thinking of selling or would like an honest appraisal of your home’s market value, speak to the Chartwell Noble team today. We’re here to help you make the right move.