Understanding the Current Housing Market: What Buyers and Sellers Need to Know
The UK housing market has seen a shift in recent months. While house price growth has slowed down, market activity on the other hand remains robust by 0.5% this month, bringing the typical asking price to £367,994. The most recent statistics from Rightmove suggest that although home prices are increasing slowly, buyer demand is still high.
This slowdown in price growth is partly due to external factors, like the approaching Stamp Duty deadline on the 1st April 2025. Although some price reductions are expected due to the upcoming change in Stamp Duty regulations, there is still a lot of interest from potential buyers, especially in regions where demand is still higher than supply.
February’s price growth comes after a strong start to the year, which saw more significant price increases. However, as we approach the end of March, when the stamp duty rate changes, the market is expected to see some shifts. First-time buyers, particularly those purchasing properties between £500,001 and £625,000, could be affected by an additional £11,250 in costs if they miss the deadline.
As of now, more than 550,000 homes are waiting to complete their sale, which is 25% more than this time last year. This backlog could create a ‘conveyancing log-jam’, especially in high-demand regions such a s London, where the number of first-time buyers in the completion stage has increased by 28% year-on-year.
Rightmove’s property expert, Colleen Babcock, noted that new sellers are showing price restraint, mindful of both high competition and the upcoming tax changes. She suggests that a short extension of the stamp duty deadline could help ease the expected ‘conveyancing log-jam’ and prevent buyers from facing additional costs through no fault of their own.
Looking ahead, with inflation and economic pressures still on the horizon, it is important for both buyers and sellers to remain aware of the ever-evolving market patterns.
Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
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The information contained within was correct at the time of publication but is subject to change.
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