Decade-high choice to benefit Spring buyers who miss stamp duty deadline
The average price of property coming to market for sale rises by 1.1% (+£3,876) this month to £371,870, in line with the long-term March average increase, as many new sellers price sensibly amid decade-high competition to sell:
• While new Spring buyers will not beat this month’s stamp duty deadline, they will benefit from the highest property choice at this time of year since 2015 • Massive log-jam of 575,000 moves in the legal completion process, with many trying to beat March’s stamp duty deadline
• Despite ongoing global uncertainty, the property market remains resilient, with positive signs of growth heading into Spring:
• The number of sales being agreed is 9% higher than at this time in 2024, a positive sign for the market post-stamp duty increase, and the number of new sellers is now 8% ahead of this time last year
• Mortgage rates remain only fractionally lower than at this time last year as buyer affordability remains stretched, and Rightmove welcomes proposals by the regulator to look at ways responsible lending can be simplified:
• The average five-year fixed mortgage rate is now 4.74%, down from the peak of 6.11% in July 2023, but only marginally lower than the 4.84% at this time last year
Affordability trends
Price & activity trends
Regional trends
Overview
The average price of property coming to the market for sale has risen by 1.1% (+£3,876) this month, bringing it to £371,870, which aligns with the typical March increase seen in previous years. This indicates that many new sellers are pricing their properties sensibly, rather than becoming overly optimistic with pricing, which is often associated with the traditionally buoyant Spring market.
Historically, February and March are the best months for sellers to list their homes, based on the highest proportion of homes listed during these months going on to find a buyer. However, new Spring sellers may face more competition this year due to a decade-high number of sellers entering the market. On the other hand, new Spring buyers are presented with the widest choice of properties since 2015, offering some consolation for those who won’t benefit from the current stamp duty savings in England and face higher tax charges starting in April.
The 575,000 homes currently going through the legal completion process represent a significant proportion of the expected 1.15 million final transactions for the entire year of 2025. Many movers in England are likely attempting to complete their purchases before the stamp duty deadline at the end of March. An estimated 74,000 moves, including 25,000 first-time buyers, will miss the March 31st deadline and instead complete in April, resulting in an additional £142 million in tax costs. While hopes of an extension are fading, the upcoming Spring Statement, just before the deadline, may present an opportunity to announce a short extension to assist those who were expecting to complete on time but were delayed.
Despite global turbulence and uncertainty, the property market has remained stable and resilient so far this year. The data suggests this stability is likely to continue in the short term. Sales are currently 9% higher than at this time in 2024, and new sellers are 8% ahead of last year, both positive signs for continued market activity despite the upcoming stamp duty increase in April.
That said, persistently high mortgage rates are dampening some of the market optimism. While mortgage rates have slightly improved since the peak of 6.11% in July 2023, the average five-year fixed mortgage rate now stands at 4.74%, only a marginal improvement on the 4.84% rate from this time last year. Proposals to simplify responsible lending, such as encouraging lenders to stress-test appropriately, easing the mortgage process for home movers, and looking at responsible ways to allow first-time buyers to borrow more, are being welcomed. However, change may take time, and any reduction in mortgage rates will likely provide more immediate relief to home movers.