“The tug-of-war between rising costs and market competitiveness will define 2025 agency fees.”
Amy Selfe, Associate Director at Landwood Group, predicts major property trends for 2025 and how estate agents can maximise industry opportunities
As 2025 approaches, the property market is set for shifts driven by regulatory changes, evolving buyer behaviours and economic factors, presenting estate agents with valuable opportunities to navigate these trends and thrive in the year ahead.
Stamp duty changes and market dynamics
One of the most pressing issues for early 2025 is the anticipated rush to complete transactions before new stamp duty changes take effect in April.
This deadline could lead to a temporary surge in property prices, as demand may outstrip supply, in certain areas. Buyers may scramble to finalise deals before the changes, pushing prices upward.
However, the post-April landscape might tell a different story. The new stamp duty thresholds, which significantly impact first-time buyers and investors, could lead to a cooling in the market. Sellers may hesitate to list properties if they fear diminished returns, while buyers may reduce their offers to reflect the new stamp duty costs.
For first-time buyers, 2025 may be another uphill battle, with affordability pressures driving more people into the rental market, continuing the growth trend seen in the rental market over recent years.
For investors, the changes – coupled with the proposed abolishment of Section 21 notices – could dampen confidence in residential property investments. Some may pivot towards commercial property investments as an alternative.
Regulations and compliance
Agents should also brace for increased regulatory scrutiny in 2025. The Royal Institution of Chartered Surveyors have released a new agency guidance note effective from January 2025. This guidance reinforces the need for honesty and integrity in dealings, emphasising transparency and ethical practices.
These measures are indicative of a broader push for greater accountability in the property sector, with regulators seeking to protect consumers and enhance market confidence.
Agency fees: rising costs versus market realities
Operational costs for estate agencies have risen, but whether these increases translate to higher agency fees is less certain. The trajectory of fees will largely depend on market conditions.
The tug-of-war between rising costs and market competitiveness will define 2025 agency fees.
If the market slows, competition among agents may intensify, with firms reluctant to raise fees in an environment where buyers and sellers are price-sensitive.
Sellers, already feeling the pinch from stamp duty changes, may resist higher fees, further constraining agents’ ability to adjust pricing. On the other hand, if demand remains strong, agencies may have more leeway to pass on operational costs to clients.
Opportunities amid uncertainty
While potential challenges loom, there are opportunities for agile and well-prepared estate agents. Those who invest in market intelligence, leverage technology to streamline operations and maintain strong client relationships will be well-positioned to thrive.
In a year of uncertainty, it will be adaptability and innovation that separates the winners from the rest.
Diversifying services, such as expanding into commercial property or offering property management solutions, could also mitigate risks tied to residential market fluctuations.
As 2025 unfolds, the ability to adapt to market changes will be the hallmark of successful agencies.
By staying informed, proactive and customer-focused, agents can navigate the complexities of the year ahead and seize opportunities in an evolving market.
