Chain-free homes surge as landlords rush to beat tax increases

One week after the Budget, landlords and second homeowners are selling up, bracing for higher taxes and council tax premiums.

According to Zoopla, a third of homes for sale on the property website are currently chain-free.

A chain-free home is one where the sale is not dependent on the buyer or seller needing to complete the sale of another property.

Chain-free homes typically complete faster than other properties, with buyer enquiries for these homes 33% higher than for those not advertised as chain-free.

From April 2025, councils will be able to impose a premium of up to 100% in additional council tax on second homes.

The Budget also revealed that landlords will face an increased stamp duty surcharge, rising from 3% to 5%.

Chain-free homes tend to complete much faster

Izabella Lubowiecka, senior property researcher at Zoopla says there are several reasons why a home might be chain-free.

She said: “Individuals may be selling an inherited home, households might be moving in together, going from two homes to one, or investors and second owners could be selling additional property.

“Those looking at buying a home before stamp duty rates increase in April 2025 should think about buying a chain-free home as they tend to complete much faster. Now is a great time to look for properties, with more chain-free homes available than in previous months. Widening a search to include new homes might also offer a wider range of choice.”

According to the property website, 41% of two-bed homes are currently listed as chain-free on Zoopla.

The property website says: “Two-bed properties are often popular with older buyers looking to downsize, as well as landlords and investors, meaning they are more likely to be chain-free when they come onto the market compared to other types of homes.”

Locations with highest proportion of chain-free homes

Data from Zoopla suggests that the North West, Yorkshire and the Humber, and the South West have the highest proportion of chain-free homes at 36%, partly due to second-home hotspots in areas like Carlisle (near the Lake District) and the Bournemouth Coast.

In the North, Hull stands out with 46.2% of homes for sale being chain-free, with two-bed homes being the most common.

Meanwhile, in the South, suburban London and towns in more affordable areas of the commuter belt, such as Uxbridge (44.7%), also have an above-average number of chain-free homes, with three-bed properties being the most common.