Market Comment (December 2025) - Planning Ahead For 2026
The end of the year is a natural time to look back, while also looking forward, and hoping for the best in 2026. At Trading Places, we are pleased to say we played a strong role in assisting so many people to move home in, out and around Leytonstone and surrounding areas. We look forward to helping many more next year.
As we move towards the end of 2025, the UK housing market finds itself in a familiar place for December: quieter, more reflective, and shaped as much by uncertainty as by seasonal slowdown. However, beneath the headlines, the picture is more balanced than it might first appear, particularly for buyers and sellers planning their next move in the new year.
The recent Budget had a big impact on property market
One of the biggest influences on the final months of 2025 has been uncertainty. A late autumn Budget, combined with speculation around interest rates, caused many would-be sellers to pause their plans. National data shows that almost a third fewer homes than expected came to market in November, with Greater London seeing one of the sharpest drops in new listings. This hesitation has had a knock-on effect: the number of homes available for sale has fallen quickly, reversing the oversupply seen over the summer and helping to support prices in the short term.
Asking prices and transactions taking their traditional lull
As expected for the time of year, asking prices drifted lower through November and December. Average asking prices across England and Wales fell by around 0.5% in November, with a slightly larger-than-average seasonal drop recorded in December.
Over the year as a whole, prices ended broadly flat, down by less than 1%. London remains one of the softer-performing regions, while parts of the North West continue to show modest annual growth. This north–south divide has been a recurring theme throughout 2025.
Transaction activity has also slowed, but it is worth keeping this in context. Mortgage approvals and agreed sales over the year remained close to pre-pandemic norms, which is a sign of underlying resilience. Stamp duty changes earlier in the year pulled a lot of activity into the spring, particularly March, making the second half of the year look weaker by comparison. Even so, the total number of sales agreed in 2025 finished slightly higher than in 2024.
Affordability, while still challenging, has been gradually improving. Mortgage rates have eased from their recent peaks, wages have continued to rise, and lenders have become a little more flexible. This has been especially helpful for first-time buyers, whose mortgage costs as a share of income are now at their lowest level since 2022. High loan-to-value lending has also increased, suggesting that buyers with smaller deposits are finding it easier to get a foothold.
Good preparation can speed up the exchange process
One practical consideration for anyone moving is the time it takes to get from offer to exchange. Across the UK, this now averages just over four months, and in London it is typically a little longer. This makes good preparation more important than ever. Having solicitors instructed early, paperwork ready, and realistic expectations on timescales can make a real difference to how smoothly a transaction progresses.
Boxing Day bounce and 2026
Looking ahead to early 2026, there are reasons for cautious optimism. Many buyers and sellers who delayed decisions due to Budget uncertainty are expected to re-enter the market around the traditional Boxing Day and January bounce. Stock levels should rise as pent-up listings come forward, while demand is likely to be supported by improving affordability and the possibility of further interest rate reductions. Most forecasts point to modest price growth next year, rather than any sharp correction in either direction.
For anyone considering a move in the months ahead, the key message is to focus less on short-term headlines and more on personal circumstances. Pricing realistically, understanding local demand, and planning for realistic timescales will matter far more than trying to time the market perfectly. As ever, informed decisions and good advice remain the strongest foundations for a successful move.
We make sure you make an informed move
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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