As we approach the spring selling season, one of the busiest times of the year for the property market, activity is increasing. With winter behind us, many buyers are re-entering the market, while more sellers are listing their homes.

This month, the average asking price for properties has risen by 0.5% (+£1,805) to £367,994, a more modest increase compared to the usual 0.8% rise typically seen at this time of year.

House Prices: What’s Happening Now?

This slower-than-usual price rise is largely influenced by two key factors:

• Upcoming Stamp Duty Changes – With alterations to stamp duty in England set to take effect at the end of March, some sellers are keeping prices competitive to attract buyers before the changes affect affordability.
• A Surge in Available Homes – The number of properties on the market has reached a 10-year high, giving buyers more choice and prompting sellers to price strategically to stand out.

For first-time buyers, prices have dipped slightly by 0.1%, while larger homes at the top end of the market have seen a 0.6% increase in asking prices.

What the Stamp Duty Changes Mean for Home Movers

The upcoming stamp duty changes will affect buyers differently depending on the property price and whether they are first-time buyers.

• Those purchasing homes between £500,001 and £625,000 could face the biggest impact, with an extra £11,250 in costs if they don’t complete before the deadline.
• More than 550,000 homes are currently sold and awaiting legal completion, a 25% increase from last year, raising concerns about a potential backlog in the conveyancing process.
• The average property transaction still takes around five months to complete, meaning many buyers have been racing against the clock since November.

While some buyers may reconsider their purchases if they miss the deadline,  most are continuing with their transactions, having already accounted for the potential additional costs.

Expert Insights on the Housing Market

As we head into spring, property experts are closely watching how sellers adapt and how policy changes impact the market.

Seller Strategies and the Stamp Duty Deadline

Rightmove’s Property expert Colleen Babcock notes that sellers are adjusting their pricing strategies in response to rising competition and the stamp duty deadline:

“New sellers are exercising some pricing restraint, aware of the high level of competition and the looming stamp duty deadline. Given the predicted conveyancing backlog, it would seem reasonable for the government to consider a short extension.”

Mortgage Market Outlook

On the mortgage front, there is cautious optimism. Rightmove’s mortgage expert Matt Smith highlights the potential for further Bank of England rate cuts, which could positively influence mortgage rates:

“We’ve seen the first 0.25% Bank Rate cut of the year, with potentially two or three more cuts ahead. While major rate drops may not happen across the board, we’re already seeing the first sub 4% mortgage rates of 2025.”

Market Activity: A Strong Start to 2025

Despite muted house price growth, market activity is outpacing last year:

• 13% more sellers are listing their properties compared to 2024.
• Buyer demand is up by 8%.
• Sales agreed have increased by 15%.
• January set a record for Mortgage in Principle applications, with a 49% rise compared to the same time last year.

What’s Next for the Market?

While uncertainties remain around interest rates and stamp duty, overall market activity is positive, and no major slowdown is expected after April’s deadline. With increased buyer choice, steady mortgage rates, and strong demand, 2025 is shaping up to be an active year for movers and investors alike.

If you're thinking of making a move, now might be the right time to start planning.

Speak with our dedicated team by calling us on 0116 266 9977!