Our Review of the 2025 Property Market

By Craig Sewell MNAEA: Managing Director & Owner, Andrew Morris Estate Agents

Every year in property has its own character, but 2025 was one that really tested patience, confidence, and decision making across the board. From our perspective at Andrew Morris Estate Agents, working throughout Hereford and the surrounding villages, it was a year defined by strong intent, measured progress, and a market that demanded realism from everyone involved.

It was not a year of runaway momentum, but it was a year of substance. Buyers were active, sellers were engaged, and conversations were happening constantly. What changed was how long decisions took, and how carefully people weighed their options before committing.

For me personally, 2025 was also hugely significant. Completing the full takeover of the business marked an important milestone and a proud moment. It reinforced the responsibility we have to our clients, and the standards we set for how we operate as a local, independent estate agency.

What follows is our view of how the year unfolded, using several key measures from within our business. I will not be publishing figures, but instead sharing the percentage changes compared with 2024, alongside how these compare to national trends.

New instructions: steady confidence in a cautious year

In 2025, new instructions taken increased by approximately 12 percent compared with the previous year.

Nationally, many commentators reported an improvement in listing levels across the year, particularly as sellers adjusted expectations and accepted that activity was returning, just not at the pace seen during the post pandemic surge. Our experience locally reflected this trend closely.

Despite wider economic noise and periods of uncertainty, homeowners were still making plans. Upsizing, downsizing, relocating, and selling due to life changes all continued, and many clients wanted to be positioned and ready, even if they were not in a rush to move immediately.

Where 2025 differed from earlier years was the level of care taken before committing to market. Pricing strategy, timing, and presentation were discussed in more depth than ever, and vendors were far more open to detailed advice, which in turn led to better quality launches.

Sales agreed: a more challenging conversion year

Our number of sales agreed dipped by just under 5 percent year on year.

This is where the tougher side of the 2025 market really showed itself. While instruction levels rose, converting interest into agreed sales required more work, more negotiation, and more patience. Buyers were viewing, comparing, and then often waiting.

National figures suggested overall transaction levels improved compared with 2024, but beneath that headline was a clear story of hesitation. Interest rates, mortgage affordability, and uncertainty around wider economic decisions, including the Budget, caused many buyers to pause before making offers.

Locally, this meant longer sales journeys. Properties that were priced correctly still sold, and often well, but homes that tested the market even slightly could quickly lose momentum. This was not a market that rewarded optimism on price without evidence to support it.

Valuations: meaningful growth and better conversations

Valuation activity increased by just under 5 percent compared with 2024.

This rise is an important indicator of underlying market health. Even during quieter spells, people were actively exploring their options. Many were not committing straight away, but they were planning, gathering information, and seeking clarity.

National trends showed similar behaviour, with valuation requests and appraisal levels holding up better than transaction volumes at various points during the year. For us, valuations in 2025 felt more purposeful. Clients were asking better questions, thinking longer term, and wanting honest, detailed advice rather than optimistic headline figures.

That shift has been positive. It has led to stronger instruction quality and fewer mismatches between expectation and reality once properties reached the market.

Viewings: buyer engagement remained strong

One of the standout positives of 2025 was viewing activity, which increased by around 17.5 percent year on year.

This aligns with national data suggesting that while buyers were cautious, they were very much present. The appetite to move did not disappear, it simply became more selective.

From our experience, buyers were better prepared, more informed, and quicker to dismiss homes that did not meet their criteria or appeared overpriced. This made first impressions more important than ever. Homes that launched well attracted strong interest, while those that did not often struggled to recover momentum. The message was clear. Buyers were active, but they expected value, clarity, and realism.

Fall throughs: marginal improvement in a fragile environment

Fall throughs reduced slightly by just under 2 percent compared with 2024.

While this is a small improvement, it is worth putting into context. Nationally, fall through levels remained a challenge during 2025, with affordability pressures, survey issues, and chain complications continuing to disrupt progress.

In our business, proactive sales progression played a key role. Clear communication, regular updates, and early identification of potential issues helped minimise disruption, even in a year where chains were often longer and more delicate.

It is also worth noting that with slightly fewer sales agreed overall, each fall through carried more weight. Managing risk and expectation was therefore crucial.

Withdrawals: a noticeable increase reflecting market reality

Withdrawals from the market increased by approximately 32 percent compared with the previous year.

This was one of the most telling indicators of how 2025 unfolded. Nationally, withdrawals also rose at points throughout the year, often linked to pricing misalignment or shifts in confidence when economic uncertainty made headlines.

Locally, withdrawals generally fell into three categories. Some vendors tested the market and decided to wait. Others reassessed plans due to changes elsewhere in a chain. And in some cases, pricing expectations simply did not meet buyer reality.

While no agent welcomes withdrawals, they do reflect a market finding its level. The positive takeaway is that homes priced correctly, and launched with a clear strategy, continued to achieve successful outcomes.

Looking ahead to 2026

As we look toward 2026, there is a growing sense of optimism. Many of the factors that caused hesitation during 2025 are beginning to settle, and confidence feels more stable moving forward.

2025 was an important year for our business, not just statistically, but structurally and personally.

Taking full ownership has sharpened our focus and reinforced our commitment to delivering honest advice, strong results, and a service rooted firmly in our local community.

So the question now is, what does the property market have in store for 2026? I will be sharing my thoughts and predictions separately, but early signs suggest it could be a very positive and exciting year.

If you are considering a move in the year ahead, or simply want a realistic conversation about your options, we would be delighted to help.