By Steve Cook FNAEA – Clarke Gammon
As this month’s stamp duty deadline edges closer, those homebuyers who have missed the cut-off will benefit from a decade-high choice of properties this spring, with competition forcing many sellers to restrict price increases, according to a recent report.
The report, Rightmove’s monthly house price index, confirms the average price of a property coming to market from across the UK has risen by 1.1% or £3,867 this month to £371,870, in line with the long-term average increase in March.
Locally, in and around the towns and villages where our offices are based in Guildford, Haslemere and Liphook, unlike in previous years, most sellers are listening to reason and pricing their homes realistically, rather than getting caught up in the usual March madness of being overly-optimistic. A pragmatic approach to setting asking prices is absolutely key to attracting buyer interest in a highly competitive buyer’s market.
The market has been particularly busy in early March as buyers rush to complete deals before a tax break runs out on the 31st March. The stamp duty thresholds, which were temporarily increased in September 2022, are due to fall back after the deadline, which means some buyers could end up paying thousands of pounds more in tax.
The Rightmove index confirms the logjam of 575,000 moves going through the legal completion process. With an estimated 74,000 moves in the pipeline, including 25,000 first-time buyers, that will just miss the deadline, paying a combined £142m in extra tax.
If it’s any comfort to those buyers, Rightmove suggests that they will be benefiting from the highest property choice at this time of year since 2015, I’m not sure many will consider this a benefit.
Colleen Babcock, property expert at Rightmove, said that although the hope of a deadline extension is fading, the chancellor, Rachel Reeves’s spring statement on 26 March could provide an “opportune moment to announce a short extension to help these movers”.
Market resilience
Encouragingly, the property market has remained stable so far this year, despite the global economic turbulence and political uncertainty. The number of sales being agreed is 9% higher than at this time in 2024, with the number of new sellers now 8% ahead of this time last year, the index confirms. Mortgage rates are only slightly lower than this time last year, stretching buyer affordability.
The average five-year fixed mortgage rate is 4.74%, down from a peak of 6.11% in July 2023, but only marginally lower than the 4.84% this time last year.
“The economic turbulence happening globally is impacting mortgage rates, and we’re seeing some small rate fluctuations on a week-by-week basis,” said Matt Smith, mortgage expert at Rightmove. “Most affected are rates for those with the smallest deposits, which is a double whammy for first-time buyers and those who need to borrow more.”
Although at the Bank of England meeting on Thursday 20th March, it was announced, as expected, that interest rates remain unchanged at 4.5%, the downward trend is likely to continue in the coming months.
Rightmove has welcomed proposals by the mortgage regulator to look at ways that responsible lending can be simplified. This includes encouraging lenders to downgrade stress tests, making mortgage processes easier for homeowners, and in the longer term, looking at responsible ways to allow first-time buyers to borrow more.
Recently Listed homes
Here are a selection of some of our most recently listed homes for sale –
House for Sale in Haslemere – Guide Price £3,500,000
House for Sale in Guildford – Guide Price £2,000,000
New Home for Sale in Merrow – Guide Price £1,475,000
House for Sale in Liphook – Guide Price £1,295,000
House for Sale in Haslemere – Guide Price £775,000
House for Sale in Guildford – Guide Price £635,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
If you are considering a move we have demand for property in and around the towns and villages covered by our offices in Guildford, Haslemere and Liphook with many motivated buyers looking for a new home.
Please feel free to to contact any of our offices, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
Why not try our instant online valuation tool?
Steve Cook FNAEA Senior Consultant – Clarke Gammon
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