Buyers and Sellers Fuel UK's Property Market Surge

The UK property market has entered 2025 with renewed energy as both buyers and sellers demonstrate increased confidence in making their moves. A combination of rising demand, increased listings, and a stabilising economic landscape is driving activity, setting the stage for a vibrant spring housing market. Despite challenges, such as mortgage affordability and upcoming stamp duty changes, the market has shown resilience, with transaction volumes rising and property prices maintaining steady growth.

This momentum suggests that the coming months will be crucial for those looking to buy or sell as competition and opportunity continue to shape the property landscape.

Increased activity and market confidence

The start of the year has brought a noticeable surge in property market activity throughout the UK. Many buyers and sellers who had previously held back due to economic uncertainties are now actively participating with renewed confidence. This surge is attributed to a stabilising market and a general sense of optimism.

The volume of property listings has significantly risen, and transactions are being completed at a faster rate. Buyers are eager to seize current opportunities, while sellers are looking to benefit from favourable conditions. The renewed interest in the market is setting the scene for a vibrant and dynamic spring.

Additionally, estate agents have observed increased engagement and enquiries, further indicating a healthy market environment. This renewed confidence and activity are promising signs for the coming months.

Image by Oleksandr Pidvalnyi from Pixabay

Stamp Duty deadline pressures and market response

One of the primary factors currently shaping the market is the upcoming changes to Stamp Duty, which will take effect on 1 April. According to Rightmove, around 575,000 property transactions are presently in the legal completion stage. Buyers are in a race against time to finalise their purchases before the deadline to avoid additional costs. However, it is estimated that approximately 74,000 transactions, including 25,000 from first-time buyers, may miss the deadline, resulting in an additional tax burden totalling £142 million.

While there is still some hope for a last-minute extension to the Stamp Duty deadline, many buyers are coming to terms with the situation. Estate agents report that buyers are factoring these extra costs into their budgets and are proceeding with their purchases despite the financial implications.

This rush to complete transactions has heightened activity in the property market, contributing to a dynamic environment. As the deadline approaches, the urgency among buyers is palpable, which is leading to faster decision-making and a bustling market scene. Estate agents and financial advisors play a crucial role in guiding buyers through this period, ensuring that they are well informed and prepared to navigate the additional pressures associated with the impending Stamp Duty changes.

Mortgage rates and affordability considerations

Affordability remains a significant concern for many prospective buyers, as mortgage rates, although lower than their peak in mid-2023, continue to pose challenges. The average five-year fixed mortgage rate stands at 4.74%, a decrease from 6.11% in July 2023 but only marginally lower than the 4.84% recorded at the same time last year. Many had anticipated more substantial reductions, but global economic uncertainties are continuing to affect interest rates. Matt Smith, a mortgage expert at Rightmove, has pointed out that ongoing economic turbulence globally is causing small fluctuations in mortgage rates on a weekly basis.

In response, Rightmove has expressed support for proposals from financial regulators aimed at simplifying responsible lending practices, which could make it easier for buyers to secure mortgages. However, significant changes may take time to be implemented, meaning affordability pressures could persist for the foreseeable future.

Photo by Collins independant on Unsplash

Outlook for the spring market

Spring is historically one of the busiest times for property transactions, and this year appears to be no different. "New instruction prices have remained almost static in the last year but they have still risen by 26% since 2019. With the Spring selling season now approaching, it’s likely they will remain stable," says Katy Billany, executive director of TwentyEA. This consistency offers a reassuring foundation for the coming months, allowing both buyers and sellers to make informed decisions.

March has seen a slight uptick in property prices, with an average increase of 1.1% (+£3,876). The average price of property coming to market now stands at £371,870. These figures indicate that the market is holding steady, providing a positive outlook for sellers.

With competition among sellers at its highest in a decade, setting realistic asking prices and ensuring excellent property presentation is crucial. Experts recommend that sellers work closely with estate agents to attract serious buyers. In the higher-end market, in particular, remaining price-conscious is essential for successful sales.

Cautiously optimistic 

While challenges remain, particularly around affordability and mortgage rates, the stabilising property prices and steady market activity suggest a promising spring season. As always, staying informed and prepared will be key to navigating this vibrant period in the UK property market.

To find out more about how the property market impacts your property plans, call our team at Leslie & Co on 020 3488 6445