During the first months of 2025, the UK property market has been operating at a decidedly quick tempo.
At the end of March, changes to Stamp Duty Land Tax saw the temporary increases to the thresholds that were put in place in September 2022 come to an end, and that put a rocket under househunters.
The change saw an end to the rule that no first-time buyer would pay stamp duty when buying a home worth £425,000 or more, with the new threshold dropping to £300,000.
In research conducted by Barclays as part of its monthly Property Insights report, the first-time buyers surveyed revealed that they faced paying an average of £6,512 in stamp duty, if they missed the deadline.
As a result, the UK property market was operating at a furious pace, with the volume of mortgage completions increasing 50 per cent in March, the highest it had been since September 2021.
All of the above would lead you to believe that 2025 has been a year for the sellers rather than the buyers, especially if you were selling to a first-time buyer with a rather hard deadline to meet.
But the latest data released from Barclays Property Insights tells a different story.
It pays to negotiate
Newly released research from Barclays reveals that nearly a tenth of UK adults (9%) say they have made an offer on a property in the last 12 months, offering on average almost £4,000 (£3,898) less than the price listed by the estate agent. In total, two thirds (65%) said they offered under the asking price, while a quarter (25%) made an offer over asking.
As you might expect, the same pattern has been found in sellers and strongly suggests we are in a buyers’ market. In the same research, according to Barclays’ calculations, those in the process of selling or who have sold a home in the last 12 months (4 per cent) are accepting an average of £6,632 under the listing price.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, confirms this, saying: “For those ready to buy, our data shows that we’re currently in a buyers’ market when it comes to negotiations, with most sellers willing to accept offers under asking in order to facilitate their next move.”
While negotiation seems like the de-facto way of working, it is not universal. In fact, 15% of respondents said they would not entertain offers under the asking price.
The challenge for renters remains
In new research from Barclays, from those who are renting, 44% now see a deposit as one of the biggest barriers to owning a home, with over a fifth (21 per cent) of those saving setting aside an average of £254.90 each month.
Looking across all age groups, renters anticipate it will take 4.5 years to accrue their first deposit. Gen Z, who are saving an average of £191 per month, are the demographic who expect to build their deposit fastest, at 3.9 years on average.
Millennials are leading the charge with the amount set aside, with an average monthly deposit saving of £313 per month, they expect to buy after 4.7 years.
A property price poker game
Negotiating meaningfully
9% say they have made an offer on a property in the last 12 months, offering on average £3,898 less than the estate agent's price listed
Driving a hard bargain
65% said they offered under the asking price
Pushing down costs
Sellers are accepting an average of £6,632 under the listing price
To get a deposit takes dedication
That’s a trend that has held firm. Barclays' May Property Insights also shows that wannabe homeowners are being creative to save what they need for their deposits. 24% are cutting back on day-to-day discretionary spending, 20% are taking fewer holidays and 15% are taking on additional work to make extra money.
Speaking about this, Patel added: “The current interest rate environment has not dampened renters’ appetite for getting on the property ladder, many of whom are taking steps to save enough for a housing deposit.”
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