The spring season is in full swing, and with it comes the busiest time of year for the UK property market. As more homes hit the market and buyers ramp up their searches, it's the perfect moment to explore what’s happening with house prices, stamp duty changes, and buyer demand.
According to the latest figures from the House Price Index, the average asking price for homes in the UK has risen by 1.1% this month, equating to an increase of £3,876. This puts the average property price at £371,870, reflecting a market that remains active and competitive. This increase is consistent with typical spring trends as both buyers and sellers seek to make the most of the season.
Historically, February and March are the best months for sellers to list their homes, as these months usually see the highest proportion of homes finding buyers. Many sellers are capitalising on this surge by setting slightly higher asking prices, leading to the moderate price increase we’re seeing now.
Despite the price rise, sellers are staying realistic in their pricing expectations, avoiding overly optimistic figures to compete with the increased number of homes on the market. In fact, there are now more homes available for sale than at any time in the past 10 years.
The luxury housing market—particularly larger properties, such as four- and five-bedroom homes—has experienced the biggest price jump, with a 2.1% rise this month. By contrast, homes targeted at first-time buyers have seen a smaller, though still noticeable, increase of 0.5%.
One of the major talking points in the UK property market this month is the looming stamp duty deadline at the end of March. Buyers racing to complete their purchases before this date are facing mounting pressure, with an estimated 575,000 homes currently stuck in the conveyancing process.
Many of these transactions may not complete in time, leaving buyers to pay thousands more in stamp duty fees. Research suggests that around 74,000 buyers, including 25,000 first-time buyers, are likely to miss the deadline and face higher moving costs if their purchases don’t close before 31 March. This could add up to a collective £142 million in extra taxes.
While there has been speculation about a possible short-term stamp duty extension, time is running out, and no formal announcement has been made by the government.
Despite the looming tax changes, market activity remains positive, with more homes coming to market and more sales being agreed compared to the same time last year.
Property expert Colleen Babcock notes that while March is traditionally a strong month for sellers, this year’s higher competition means sellers need to work closely with estate agents to price competitively and ensure their properties stand out.
Mortgage affordability also remains a key consideration for buyers. According to Matt Smith, a mortgage expert, while some lenders are offering competitive mortgage rates to attract new buyers, global economic turbulence is causing small fluctuations in rates. Currently, the average five-year fixed mortgage rate stands at 4.74%, down from its peak of 6.11% in July 2023.
The increased number of homes on the market is good news for buyers, who now have the best choice of properties since 2015. This added supply is helping to create a more balanced market, though sellers may need to temper their pricing expectations to secure a buyer.
For those looking to purchase a luxury apartment in London or larger family homes, this spring presents new opportunities as competition among sellers increases. However, navigating mortgage rates and the stamp duty landscape will remain key considerations in the months ahead.
As we move beyond the stamp duty deadline, all eyes will be on how the market adjusts. Early indicators suggest continued strong activity, with both buyer demand and seller listings ahead of last year’s levels.
If you’re planning to buy, rent, or sell a property this spring, staying informed and working with the right experts can help you navigate the current market dynamics effectively.
For more updates on the latest trends in UK property prices, London apartment rentals, and mortgage rates, stay tuned for more insights!
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