UK Property Market Update: March Surge Amid Changing Stamp Duty Landscape

UK property shows a strong rise. Asking prices move up by 1.1% in March 2025. Data from Rightmove tells that prices now reach £371,870. Prices climb £3,876 since February. Spring brings this usual growth.

Stemming Activity Fuels Market Dynamics

Stamp duty changes come on April 1st. Sellers list fast. Buyers rush to buy. Agreed sales grow by 9% from last year. New property listings hit the highest count since 2015. Mark Harris, CEO of SPF Private Clients, notes motivated buyers work hard to complete deals before new taxes take hold.

Colleen Babcock of Rightmove says, "March is always strong for sellers; yet they now face more fierce competition."

Changes will lower the nil rate thresholds for first-time buyers and others. Most buyers will meet higher taxes. This drives many to move fast.

Mortgage Rates and Affordability Considerations

Mortgage rates climb. They stay higher than last year and near peak levels. The five-year fixed rate sits at 4.74%, a drop from 6.11% in July 2023. It is only a bit lower than 4.84% the same time last year. The Bank of England cut its rate from 4.75% to 4.5%. Some expect slow falls in mortgage rates.

Swap rates drop. Lenders now give better fixed rates. Buyers, especially first-timers, push to finish deals. They try to avoid large tax bills and fight harder for homes.

Regional Price Variations

Regions show different price moves. Rightmove data shows all regions rise in March. In Scotland, prices grow by 4% to an average of £197,643. The East of England grows 1.2% to £420,120. In the South East and South West, prices barely move or dip a little.

London stays the priciest market with an average of £695,885. It grows by 1.3% from last year.

Matt Thompson from Chestertons adds, "Spring brings more active buyers. Many sellers plan to list soon."

The Road Ahead

The UK property market braces for a lively season. Buyers race to finish deals before new stamp duty rules. More homes appear on the market. Mortgage rates may change further. Watching local markets and keeping up with changes stays key.

For investors, such as those in HMOs, market shifts bring both wins and risks. Stay tuned for more news on these changes.

Sources:

• Rightmove. (2025). Market Report.
• Halifax. (2025). House Price Index.
• Nationwide. (2025). Monthly Property Index.
• Bank of England. (2025). Monetary Policy Statements.