Spring tips for UK homebuyers
Spring brings more listings and competitive pricing, with 70% of homes listed in February and March completing quickly. Buyers benefit from stable mortgage rates (4.75%) and a wider selection of homes, averaging 51 days to sell. Early preparation, including securing a mortgage agreement, is essential. Researching local prices ensures informed decisions in a competitive market.
Could ‘right-sizing’ help the housing market?
Many UK homes have unused bedrooms, limiting availability for first-time buyers. ‘Right-sizing’—moving to a more suitable property—could help address housing shortages by freeing up larger homes. However, emotional attachment and moving stress are key barriers to this.
A reminder of recent property tax changes
Autumn Budget announcements included an increased surcharge on second homes (5%), adjusted Stamp Duty for first-time buyers, and increased Capital Gains Tax rates for investors. Additionally, £500m was allocated for affordable housing and supporting small housebuilders.
In the news – Home Finance
UK homeowners saw average property value gains of £80,000 in 20 years. Storm damage affected 20% of homes from 2020-2024, highlighting the need for insurance. Equity release grew in 2024, with £615m withdrawn by homeowners over 50 in Q3.
Record sales in 2024 and a surge expected in early 2025
In 2024, the UK housing market saw the highest level of sales since 2020, fuelled by reduced mortgage rates. A Q1 2025 surge is expected as Stamp Duty relief ends, but future activity depends on economic conditions and affordability trends.