The UK Property Market Sees Shift As Stamp Duty Deadline Approaches
The UK property market shifts now. The new stamp duty rules start on 1 April 2025. Asking prices climb. Sales grow fast. Mortgage rates ease a bit. Many buyers and investors look at Houses in Multiple Occupation.
Rising Asking Prices and Increased Sales Activity
Rightmove data shows that asking prices rose by 1.1% in March. Home prices now sit around £371,870. Prices climbed by roughly £3,876 since February. March often sees active market moves. Agreed sales grew by 9% compared to last year. Buyers now join the market with clear interest.
Colleen Babcock, a Rightmove expert, sees that stamp duty changes spark this market jump. Many buyers work on 575,000 transactions. Buyers hurry to finish deals before tax moves up. Rightmove notes that the number of homes on sale now hits its highest count since 2015. More homes available may help slow fast price rises. This situation gives a steadier field for buyers of HMOs or homes.
The Impact of Mortgage Rates
Mortgage rates still give buyers pause. The average five-year fixed one sits at 4.74%. This rate falls from a peak of 6.11% in July 2023. It stays near last year’s 4.84%. Some analysts point out that lower swap rates might bring cheaper fixed deals. Mark Harris at SPF Private Clients sees that swap rates now drive fixed mortgage prices.
The Bank of England cut the Bank Rate by 0.25% to reach 4.5%. This small step helps buyers. Inflation, however, ticked up. Inflation went from 2.5% to 3% in January 2025. ## Regional Price Trends
Asking prices vary by region. In Scotland, prices grow 4% compared to last year. The East of England sees a 1.2% gain over the year. In London, prices reached an average of £695,885 after a 1.3% rise. In contrast, the South West falls by 0.3%.
Matt Thompson from Chestertons notes that spring now brings more buyers. He thinks this sale season may outdo past years. Sellers see many buyers and expect prices to edge upward.
The Approach of the Stamp Duty Deadline
Stamp duty changes near on 1 April 2025. Buyers now rush to finish purchases before the change. Amanda Bryden at Halifax notes that market moves run steady. Signs point to stable prices ahead. Home supply falls while demand remains high. This mix may keep prices firm despite higher borrowing costs.
Many new buyers, especially first-timers, face a race to complete deals. Data shows that some new buyers may not finish deals before the change. This gap could shift their future costs.
Conclusion
The UK housing market now shows many shifts. Prices change fast, stamp duty rules move, and mortgage rates vary. Home prices hit high marks while seller rounds grow. The next months hold key steps for buyers, including those in HMOs. Investors must keep a close watch and use tools like mortgage calculators to plan well.
Smart buyers will study each move as the market shifts.
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