After a fast start, prices are now rising more slowly (+0.5%) than normal for the time of year (+0.8%) as more stock comes onto the market and buyers run out of time to complete on their purchases before stamp duty rises.

Seller numbers growing

In good news for agents, the number of homes on their books should be at a ten-year high as the number of new sellers coming to market is 13% ahead of 2024.

And with buyer demand up 8%, the balance has not tipped too far into the buyer’s favour and completed deals have gone up by 15%.

What the report also highlights is the chronically slow conveyancing process as the rush to complete heats up and there are fears large numbers of buyers may miss the April 1st stamp duty deadline.

As the portal’s figures show, the transaction pipeline has more than 25% more homes (550,0000) stuck in it than last year, Rightmove is calling for urgent action to speed up the process

The lengthy and frustrating completion process means that the average mover has had to have one eye on the clock since November.”

It’s those buying in the Capital that have the biggest financial incentive to beat the rise, because the cost of their purchases is so much higher, so it is no surprise to find that they are stuck in the worst backlog at 28% above last year’s figures.

Colleen Babcock, property expert at Rightmove concludes: “For those in higher-priced areas of England like London, the additional stamp duty charges they face can be significant and difficult to afford when already stretched to the max.

“The lengthy and frustrating completion process means that the average mover has had to have one eye on the clock since November to ensure that they complete before the stamp duty deadline.

“Beyond the deadline, agents report that underlying market activity remains positive and that they don’t expect a major drop-off in activity from April, as the financial impact on many movers is smaller than previous deadlines.”

INDUSTRY REACTION

Jeremy Leaf, north London estate agent and a former RICS residential chairman, comments: “Asking prices are not values but reflect seller aspirations at the start of the process.

“Although the start of the year saw the highest jump in prices and listings since 2020 and 2015 respectively, even with ongoing affordability concerns, this was always unlikely to continue at the same pace as we near the end of the stamp duty concession.”

Tomer Aboody, director of specialist lender MT Finance, also highlights the effects of stamp duty, saying: “The confident start to 2025 continues, with more sellers coming to market and good levels of activity. Increased choice ultimately results in lower property prices as the market shifts in the buyer’s favour.

“With the stamp duty changes looming, a big push in the first quarter is likely with uncertainty potentially creeping in after that. Banks are already reducing mortgage rates in order to entice buyers, which will help maintain confidence, and a further rate cut from the Bank of England would definitely assist on that front.”

And Toby Leek, President of NAEA Propertymark, comments: “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.”