UK Property Market: A Spring Surge as Stamp Duty Deadline Nears
As March ends, homebuyers in England face a tight deadline. Stamp duty rates changed in September 2022 and will soon return to old levels. Many buyers may end up paying more tax. A report on Rightmove gives some hope as the market shifts.
A Surge in Property Choices
This spring, homebuyers find more properties to choose from. The number of choices is the highest since 2015. The report shows 575,000 deals now wait for legal checks. Out of these, about 74,000 moves—including 25,000 by first-time buyers—will miss the March 31 deadline. That loss means buyers must pay an extra £142 million in tax.
Colleen Babcock, a property expert at Rightmove, says hopes for a longer deadline are fading. She adds that Chancellor Rachel Reeves may use the upcoming spring statement on March 26 to signal a short delay. This pause may help many buyers in process.
Price Trends in the Property Market
The average property price went up by 1.1% this month. This rise means an extra £3,867 and brings the average to £371,870. This small change is like what happened in past Marches. Many sellers now set prices with a clear view. New sellers take care now, as buyers face worries over higher taxes.
Mortgage Trends and Buyer Affordability
The average five-year fixed mortgage rate sits at 4.74%. This rate is lower than the 6.11% high in July 2023. It is only a bit lower than 4.84% from a year ago. This small drop may help buyers manage costs. Still, many feel the pinch. First-time buyers suffer most when mortgage rates change. Mortgage expert Matt Smith at Rightmove points out that global challenges affect these rates.
The Bank of England has held interest rates at 4.5% after a recent cut. More cuts might come in May. Changes to mortgage rules may make borrowing simpler. This plan could help both new buyers and current homeowners.
Positive Outlook for Property Transactions
Even with global issues, the market stays strong. Rightmove expects about 1.15 million property deals this year. Sales deals are up by 9% compared to 2024, while new sellers have grown by 8%. These signs point to fresh movement in the market.
A report by Savills shows a similar view. UK home values grew last year by £22.3 billion to reach £379 billion. This rise of 6.3% shows steady growth. First-time buyers now hold more mortgage debt. Their share grew by £12.2 billion, or 21%, which shows their growing role in the market.
Conclusion
For those who own property or wish to buy, the market comes with risks and chances. Buyers now wait for a decision on stamp duty changes and face shifting mortgage rates. At the same time, more property choices create a chance for smart buying. In this changing market, careful planning and clear goals will be key for both new buyers and seasoned investors in Houses in Multiple Occupation and more.
Sources
- Rightmove Property Market Report Rightmove
- Savills UK Housing Market Report Savills
- Bank of England Interest Rates Bank of England
- Mortgage Advice & Reports Mortgage Strategy
