Spring Property Market Boost: Homebuyers Face High Choices Amidst Stamp Duty Deadline Rush

UK Property Market Sees Increased Choices Amid Stamp Duty Deadline

As March ends, homebuyers face one last push before a stamp duty change. Some worry about added costs. A report from Rightmove shows this spring has a record number of property options. Many choices keep prices steady in a busy market.

Current Market Overview

In the UK, the average property price rose by 1.1%, which is about £3,867. Now, the average price is near £371,870. The small rise fits the March trends seen for many years. New sellers now set honest prices. This keeps price gaps small when past springs often saw sky-high estimates.

Buyers move fast in March. They try to finish deals before the stamp duty break ends on 31 March. A temporary change in rates began in September 2022. Soon, the rates will go back. Today, nearly 575,000 deals wait to close, which makes the market feel tight.

About 74,000 deals, including around 25,000 by first-time buyers, risk missing the deadline. These buyers could pay around £142 million more in tax. This sum shows how high the cost can be.

Expert Insights

Colleen Babcock, a property expert at Rightmove, points to the spring statement by the Chancellor on 26 March. This event might bring news that helps buyers get ready.

Even with global hard times, the UK property market holds strong. Sales agreements grew by 9% compared to last year. The number of new sellers increased by 8%. These signs suit investors, especially those buying Houses in Multiple Occupation. HMOs now attract more owners as they collect rent from several tenants.

Mortgage Rates and Lending Conditions

Mortgage rules shape buyer moves. Today, the average five-year fixed rate is 4.74%. This marks a drop from a 6.11% peak in July 2023. The rate stays near last year’s 4.84%.

Matt Smith, a mortgage expert at Rightmove, says buyers with small deposits feel these rate changes hard. Weekly shifts impact first-time buyers and others who need larger loans.

The Bank of England plans to hold rates steady after a recent cut to 4.5%. Experts hope future cuts will let buyers step in with less strain. Rightmove welcomes ideas to make mortgage steps easier for buyers.

Market Predictions

Rightmove expects about 1.15 million property deals this year. A study by Savills shows the UK housing market grew by £22.3 billion. Now, it totals £379 billion, a 6.3% gain.

London’s market, however, fell to £72.8 billion. For the first time in two years, London now sits behind the South East. Yet the overall market stays strong next to pre-pandemic figures.

Conclusion

Homebuyers now face challenges and choices side by side. Many property options mix with stable prices as the stamp duty deadline nears. This mix creates a unique scene for those watching HMOs. With a busy forecast and possible interest rate cuts ahead, the market may draw more buyers in 2024. For more insights on property trends and investments, follow these reliable sources: