The average price of property coming to the market for sale increased by 1.1%, or £3,876, this month to £371,870, which is in line with the long-term March average increase, fresh data released by Rightmove this morning shows.
The 575,000 homes going through the legal completion process represents a large proportion of Rightmove’s prediction of 1.15 million final transactions for the whole of 2025. Those movers who are based in England will likely be trying to beat March’s stamp duty deadline as it draws closer.
Property market faces ‘massive log-jam’ ahead of stamp duty deadline – Property Industry Eye
Industry reactions:
Tom Bill, head of UK residential research at Knight Frank, said: “Buyers have started the year in circumspect mood, despite the prospect of a stamp duty increase in April. Most mortgage rates have remained stubbornly on the wrong side of 4% due to volatility on global markets, which means equity-rich, needs-driven buyers have been more active by comparison. We expect low single-digit house price growth this year, but this month’s spring statement and the future rate of UK inflation will be key factors in setting the trajectory of the housing market in 2025.”
Sarah Bush, head of residential sales and lettings at Cheffins, commented: “The year has gotten off to a good start, with a marked increase in the number of homes coming to the market in comparison to last year. Despite the wider economic outlook appearing to hold some uncertainty, the message we have received from sellers is that they are tired of sitting on the fence and really want to get on with moving this year.
“We may well see an impact on the entry level of the market as the nil rate threshold drops, however, many buyers seem to be fairly relaxed about the imminent stamp duty changes from the 1st April. Stamp duty at all levels has become a cost to be swallowed and we don’t forecast this to have a major impact on activity in the market.
“Realistic pricing is key when it comes to the current market, and particularly in countryside locations, price sensitivity is still prevalent. The most testing part of the market is the upper end, where realistic pricing is particularly important. This is where sellers need to be mindful of not overpricing if they are looking for a successful sale.”
Nathan Emerson, CEO of Propertymark, said: “It is positive to see the housing market demonstrating ongoing resilience, especially as we continue to see wider economic uncertainty. As we approach the summer months, we hope to see a sustained momentum in overall growth; however, a lot will likely depend on if we see inflation fluctuate over the coming months and to the point at which the Bank of England may choose to use invasive action regarding base rates to keep inflation in check.
“With the Spring Statement fast approaching, Propertymark looks forward to hearing how governments throughout the UK intend to make housing more affordable.”
John Tilzey, sales director, finova, remarked: “Although the rush in applications driven by the stamp duty changes has started to slow, today’s data is a positive sign that the housing market is gathering momentum after a slow year. Another silver lining has been the return of sub-5% mortgages last month, with some deals dipping below 4%, providing an extra boost to potential buyers. Given a surprise contraction in economic activity in January, all eyes turn to the Bank of England’s decision on Thursday. High street lenders are already repricing fixed-rate mortgages, driven by improved funding conditions and intensifying competition to keep customers on their books. However, these rate cuts remain modest, and there’s little sign of a major drop on the horizon for now.
“Despite this, affordability remains a real issue. Many prospective buyers continue to struggle with deposit requirements and the once dependable Bank of Mum and Dad is under pressure, too. Talks of relaxed lending rules could help make homeownership more accessible, but the fine print will be critical. Any changes must strike a careful between accessibility and ensuring long-term financial stability, especially given the risks posed by short-term fixed-rate products, which can expose borrowers to sudden payment shocks when rates inevitably adjust.”
Chris Rosindale, chief operating officer at Connells Group, added: “The market is performing well, and the number of property exchanges we’re seeing is ahead of last year. Despite the upcoming changes to Stamp Duty, we haven’t seen any slowdown in buyers’ appetites to purchase a home, even now knowing that they won’t meet the deadline of 31st March.
“The beginning of this year has seen overall growth in the sales market, with more sellers bringing their homes to market. Some stability in interest rates and modest house price growth have certainly helped to increase confidence from both buyers and sellers, and overall attitudes towards moving home are positive. Pricing is still key and setting realistic asking prices is vital to achieving the best sale.”
Property market faces ‘massive log-jam’ ahead of stamp duty deadline
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-new-rightmove-house-price-index-3/
