What a Start to 2025!

What a Start to 2025!

Buying

Buyers are rushing to beat the deadline! Over the past few months, property sales have surged, likely due to the upcoming stamp duty changes set to take effect on April 1st.

Rightmove’s property expert, Tim Bannister, explains:

"With stamp duty thresholds in England lowering from April, we’re seeing early signs of first-time buyers reacting. In London and higher-priced areas, where first-time buyers are most likely to be affected, many are accelerating their plans to avoid higher charges.

"In most other areas of England, where there’s a greater availability of stamp duty-free homes for first-time buyers, some are taking a pause with no further help announced in the Autumn Budget. However, the long-awaited second Bank Rate cut should boost optimism and improve affordability during 2025."

How Much is Stamp Duty?

The amount of stamp duty you’ll pay depends on several factors, including:
✔️ The property price
✔️ Location
✔️ Whether you’re a UK resident
✔️ If you’re a first-time buyer
✔️ Whether it’s a main home, holiday home, or investment property

To calculate how much stamp duty you’ll owe, check out our Stamp Duty Calculator.

With April fast approaching, the buyer rush is still in full swing, setting the stage for a strong start to the 2025 property market!

Mortgages

The Bank of England (BoE) has announced it will hold the Base Rate at 4.5% this month.

Throughout 2023, the BoE had been increasing and maintaining interest rates to combat inflation, which exceeded 10%—far above the government’s 2% target. Now, the focus is on striking the right balance between keeping inflation under control and supporting the economy.

Though rates are holding steady for now, experts predict further cuts in 2025, potentially bringing the Base Rate down to around 3.75%. This could significantly improve mortgage affordability for buyers and homeowners looking to remortgage.

House Prices Edge Up as Buyer Choice Hits a 10-Year High

Spring is just around the corner, bringing one of the busiest periods of the year for the housing market! As buyers re-emerge from winter hibernation, more properties are also hitting the

market, increasing choice and competition.

February’s House Price Update

✔️ According to Rightmove, The average price of property coming to market rose by 0.5% (+£1,805) to £367,994 in February.
✔️ This is slightly lower than the 0.8% average increase typically seen at this time of year.
✔️ The number of available homes for sale is at a 10-year high, giving buyers more options and keeping price growth steady.

Why Are Prices Rising More Modestly?

Two key factors are influencing the market right now:

1️⃣ Upcoming Stamp Duty Changes: Some sellers are adjusting prices to attract buyers ahead of the new tax thresholds in April.
2️⃣ Increased Buyer Choice: With more homes available than at any point in the last decade, sellers are pricing more competitively to stand out.

Interestingly, first-time buyer properties saw a slight 0.1% price decrease, making it a great time for those entering the market. Meanwhile, larger "top-of-the-ladder" homes saw a 0.6% price increase, reflecting continued demand for premium properties.

With competitive mortgage rates on the horizon, plenty of homes to choose from, and a busy spring market ahead, 2025 is shaping up to be an exciting year for buyers and sellers alike!

Are you thinking of buying or selling this year? Get in touch with our expert team to explore your options today!