Property Market Update: March 2025 – A Surge in Activity Before Stamp Duty Changes
The UK property market shows clear growth as the stamp duty changes near on 1 April. Data from Rightmove points to a strong start this year. Buyers and sellers work hard as they sort out tax matters. We review asking prices, agreed sales, and mortgage factors.
Rising Asking Prices and Increased Sales
In March, asking prices grew by 1.1%, according to Rightmove. The new average comes in at £371,800, a monthly rise of £3,876. March is one of the most active months and agreed sales jumped 9% compared to last year. First-time buyers push to finish their deals before the tax rates rise.
Colleen Babcock at Rightmove says, “March is one of the strongest months for sellers. This year, sellers work under heavy load with around 575,000 moves still in the legal process.” Sellers list many properties as the deadline nears, and the new listings are at their highest since 2015. Buyers now see more choices as they search the market.
Stamp Duty Deadline Sparks Urgency
The stamp duty deadline makes buyers act fast. The nil-rate band limits drop soon for both first-time buyers and other purchasers in England and Northern Ireland. This change hits what buyers can afford. Many work quickly to close their deals to dodge extra tax.
Mark Harris, chief executive at SPF Private Clients, says buyers rush to settle matters before the deadline. “Many cost-aware buyers do all they can to finish the move and avoid extra tax,” he explains.
Mortgage Rates and Buyer Affordability
As market action grows, mortgage rates stay a key factor. Rightmove data shows that the five-year fixed mortgage rate now stands at 4.74%, down from 6.11% in July 2023. While this is an improvement, current rates still remain high compared to last year. Buyers face limits on what they can afford.
The Bank of England held its rate at 4.5% to manage the economy amid rising inflation. This steady rate affects the interest buyers pay on their home loans. Harris adds, “Even when the Bank rate stays, fixed mortgage deals may drop if swap rates decline.”
Regional Variations in the Housing Market
Asking prices shift in every part of the UK. In March, each region saw a rise. However, annual changes differ between the north and the south. For example, Scotland’s prices now rise by 4%, while London’s average is £695,885, with a rise of just 1.3% from last year.
Some regions see strong demand even with high rates. In Yorkshire and The Humber, prices jumped by 4.1%. This clearly shows a shift with more buyers heading north.
Looking Ahead
As March ends, the market stays busy yet highly competitive. More property supply helps buyers, but the push to complete sales before the stamp duty change makes the scene even more intense. Whether you are a seasoned investor or a first-time buyer, today’s many properties and changing tax rules open new paths for investment. Using online mortgage planners can help check repayments, see savings from remortgaging, and plan for extra payments.
In sum, rising asking prices mix with a busy market and many upcoming tax changes to build a complex scene for property buyers and investors. Those planning to enter the market should make prompt moves to take advantage of the situation while keeping costs in mind.
References
- Rightmove. (2025). Recent Trends in Property Prices. Rightmove Website.
- Halifax. (2025). Housing Market Update. Halifax Website.
- Nationwide. (2025). House Price Index. Nationwide Website.
- SPF Private Clients. (2025). Perspective on Mortgage Rates. SPF Website.
- Chestertons. (2025). Market Insights. Chestertons Website.
Be sure to watch these changes as they happen, and ask a mortgage expert for advice that fits your case. Your home may be repossessed if you do not keep up repayments on your mortgage.
