The rush to beat the change in the Stamp Duty thresholds in April has led to a spike in sales and activity in the housing market as the year comes to a close according to Zoopla’s Executive Director Richard Donnell (pictured).

Buyers and sellers have been returning throughout 2024, having delayed moving decisions in the face of higher mortgage rates.

The increase in homes for sale, Zoopla says, has boosted buyers’ choice and sales have grown year on year and in the last four weeks, they were 23% up on last year as buyers try to agree deals ahead of the stamp duty changes from April 2025.

283,000 agreed sales

Zoopla’s figures show there are currently 283,000 agreed sales working their way through to completion in the first half of 2025. This is the largest sales pipeline in four years and is worth around £104bn and a 30% increase from this time last year.

The growth in sales has helped house prices return to positive territory in 2024. Annual house price growth rose 1.9% in the 12 months to November 2024, compared to -1.2% a year ago.

The average UK house price now stands at £267,500, with growth ranging from 0.7% in the South East to 6.8% in Northern Ireland and 3.5% in the North West region.

Buyers, though, have become more price-sensitive in the wake of the budget and growing uncertainty over the outlook for mortgage rates.

There is a sizable pipeline of sales that will complete in the first half of 2025.”

It means buyers are now agreeing sales at 3.6% below the asking price. Over the summer of 2024, buyers were more confident as mortgage rates fell, agreeing purchase prices that were, on average, 3.2% below the asking price.

The size of the gap between asking prices and agreed purchase prices is a lead indicator of house price growth. The gap between the asking and agreed sales price peaked at 4.6% in late 2023 resulting in modest price falls, while in 2021 during the pandemic buyers had to pay the asking price to secure a sale.

It remains a buyer’s market and signs of increased caution amongst home buyers will keep UK house price growth in check over 2025.

Donnell comments: “Buyers and sellers returned to the housing market in 2024 having delayed moves in the face of higher mortgage rates. There is a sizable pipeline of sales that will complete in the first half of 2025 with many hoping to avoid higher stamp duty costs from next April.”