Signs of rising activity are already visible, with 26% of developers reporting increased interest and viewings for their properties. The phasing out of stamp duty relief for first-time buyers, which took effect in April, was named by 23% as a key factor driving early-year market momentum.

Developers also expressed optimism over potential changes to mortgage access for first-time buyers. Roughly 27% said upcoming reforms could support higher demand. Meanwhile, 21% noted that financial conditions have started to ease — both for buyers and for their own operations — due to a drop in labour and material costs.

Lower mortgage rates (20%) and a pick-up in buyer confidence (19%) were also listed among the factors supporting positive market sentiment. Developers focused on new builds or conversions were among the most confident, with 85% expecting the market to improve in the coming year.

Looking back at 2024, two-thirds (66%) of developers said market conditions had improved compared to 2023. Only 13% said the market had deteriorated over the same period.

Complementing Shawbrook’s findings, separate analysis from property platform Zoopla showed a rebound in activity. Its research found that sales and new listings rose by 10% and 11% respectively year-on-year.