UK Property Market Update: A Booming Start to 2025 Ahead of Stamp Duty Changes
The UK property market starts 2025 with energy. Buyers and sellers act fast. The change in stamp duty on 1 April pushes activity. Rightmove shows average asking prices rose by 1.1% to £371,800 in March. Agreed sales grew by 9% compared to last year. Many see good chances in the House in Multiple Occupation (HMO) sector.
Market Dynamics: A Surge Before the Deadline
Property listings jump to numbers we have not seen since 2015. Buyers act quickly to make deals before stamp duty rules change. Colleen Babcock from Rightmove states, “March is one of the strongest months for sellers. With more competition than in the past decade, they must act with speed to close a sale.”
Stamp duty changes will shift tax bands for first-time buyers and those adding a property. Many buyers are part of a 575,000 deal process. They work hard at the last minute to beat new tax costs.
Mortgage Considerations: Rates and Affordability
Mortgage rates stay near last year’s numbers. Today, the average five-year fixed rate sits at 4.74%. This rate is lower than July’s high of 6.11% yet similar to last year’s 4.84%. Experts expect rates to drop slowly. The Bank of England cut the Bank Rate from 4.75% to 4.5% this month.
Mark Harris, Chief Executive at SPF Private Clients, notes, “Swap rates that set our mortgage prices are going down. This lets banks set lower rates now.”
Regional Price Developments
Region by region, asking prices grow. In Scotland, prices rise by 4% year-on-year. In the South East prices go up slightly by 0.6%. In the South West, prices dip by 0.3%. London stays the priciest with an average asking price of £695,885.
Matt Thompson from Chestertons says, "Spring brings more buyers, yet many will fight to buy the best homes."
Always Consider the Long-Term
With mortgage trends and price shifts, investors must watch changes close. Using tools like mortgage calculators can help show how payments affect home budgets. Such tools also show potential savings when fixing or paying down loans early.
Online guides from Better.co.uk stress the need for free mortgage advice. This support helps those who plan well as they move into new investments.
Conclusion
The UK property market shows strong signs for the coming year. Asking prices rise, sales grow, and new listings fill the market. The stamp duty changes spark a rush among buyers, adding to the busy scene. Keeping track of mortgage trends and using available advice can support a solid property plan in the evolving HMO market.
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