Decade-High Choice to Benefit Spring Buyers Who Miss Stamp Duty Deadline

The UK property market is showing signs of resilience as Spring arrives, with the average price of property coming to market rising by 1.1% (+£3,876) this month to £371,870. This increase aligns with the long-term March average and reflects a decade-high level of competition among sellers.

Highest Property Choice Since 2015

While new Spring buyers may miss the stamp duty deadline, they will benefit from the highest property choice at this time of year since 2015. This abundance of options comes as 575,000 moves are currently stuck in the legal completion process, with many aiming to beat the March deadline.

Positive Market Trends

Despite ongoing global uncertainty, the property market remains robust. The number of sales being agreed is 9% higher than at this time in 2024, and the number of new sellers is 8% ahead of last year’s figures. This suggests that the market is experiencing positive growth as the Spring season progresses.

Mortgage Rates and Affordability

Mortgage rates remain only fractionally lower than a year ago, with the average five-year fixed mortgage rate at 4.74%, down from the peak of 6.11% in July 2023 but only slightly lower than the 4.84% rate from last year. Buyer affordability remains stretched, and Rightmove welcomes proposals by the regulator to simplify responsible lending practices.

Market Sector Breakdown

First-time buyers: £227,965 (+0.5% MoM)
Second-steppers: £343,802 (+0.8% MoM)
Top of the ladder: £67,311 (+2.1% MoM)

Expert Insights

Colleen Babcock, a property expert at Rightmove, notes that March is historically one of the strongest months for sellers. However, she emphasises that sellers need to work closely with agents to price competitively and present their homes in the best possible light. With the stamp duty deadline looming and a massive backlog of moves in the legal pipeline, cost-conscious buyers are eager to complete their purchases and avoid extra tax expenses.

Babcock also highlights that while new sales activity is tracking above last year’s levels, high mortgage rates remain a concern. Buyers are adapting to the reality that ultra-low rates are unlikely to return, but many had hoped for a quicker decline. You can read more about what Colleen had to say here.

Conclusion

Spring buyers who miss the stamp duty deadline still have reasons to be optimistic. With increased property choices, competitive pricing strategies, and steady market growth, this season presents a unique opportunity for both buyers and sellers to make successful moves in the housing market.