0:01 AM, 17th February 2025, About 2 months ago
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The average asking price for properties entering the market has risen by 0.5% this month, reaching £367,994, according to Rightmove.
This rise, equivalent to £1,805, is less pronounced than the rapid growth seen earlier in the year and falls below the long-term average February increase.
This moderation reflects sellers’ awareness of heightened competition and the approaching stamp duty deadline in England at the end of March.
The number of homes available per estate agent branch remains high, impacting sellers’ ability to dictate prices.
Despite the stamp duty concerns, overall market activity remains strong with new seller listings 13% higher than last year.
Buyer inquiries are up 8%, and agreed sales are 15% higher.
The January 2025 mortgage in principle applications on Rightmove reached a record high, a 49% jump from the previous year.
However, the platform is warning that global economic factors could influence market sentiment.
Rightmove’s property expert, Colleen Babcock, said: “New sellers are showing some pricing restraint after a fast start to the year, being mindful of both the high level of seller competition, and in England also of the looming stamp duty deadline and extra costs for some buyers.
“Agents report that some of the steam is coming out of new sellers’ price expectations to fit the changing market conditions, which is a sensible reaction to attract buyer interest, and it will also help to support activity levels.
“The upcoming stamp duty deadline in England remains a key talking point, and while some movers may not be affected at all, others will be more severely impacted.”
The stamp duty changes will have varying effects across different regions and buyer groups, Rightmove says.
It points to first-time buyers in less expensive areas are unlikely to be affected, while those purchasing properties between £500,001 and £625,000 face a potential additional cost of £11,250 if they miss the deadline.
The platform is anticipating a surge in conveyancing activity as buyers rush to complete transactions before the deadline.
Rightmove is also pushing for a faster property transaction process and welcomes government initiatives to modernise the system.
With the average transaction time still around five months, many movers are under pressure to complete before the stamp duty deadline.
Currently, more than 550,000 properties are in the completion phase, a 25% increase compared to last year.
London is expected to experience the largest bottleneck of first-time buyers attempting to complete before March 31st.
Marc von Grundherr, a director of Benham and Reeves, said: “As of 1st April, the average London first-time buyer is set to see the stamp duty owed on their purchase increase by around £6,000-£10,000, so it’s a considerable increase in cost and one that is, of course, in the minds of those currently progressing a purchase through to completion.
“However, with the deadline coming so swiftly after the Autumn Budget, many buyers are already progressing with their plans to purchase on the basis that they may well have to pay this additional cost, and so we haven’t seen much turbulence in the form of buyers pulling out.”
Toby Leek, the president of NAEA Propertymark, said: “Many buyers will have been placed firmly in the driving seat when it comes to their next house purchase due to the time constraints placed on those needing to sell and buy their next home to beat the upcoming Stamp Duty rises.
“What we expect to see now is a potential slowing in the pace of the housing market as well as the number of mortgages approved.
“Those who are unable to move home before the Stamp Duty increases will likely be eagerly awaiting future inflation and interest rate announcements in the hopes of further improving their affordability in the long term.”
