What’s happened with house prices this month?
We’re now in the middle of the Spring selling season, which is typically the busiest time of year for the housing market.
The Rightmove monthly House Price Index reveals the average price of property coming to market has risen by 1.1% (+£3,876) this month, to £371,870, which is in line with the average price increase we usually see at this time of year. We’re seeing the number of homes listed for sale at its highest level for a decade, showing lots of people are keen to make a move happen in 2025.
Why have house prices increased?
Research shows that historically, February and March are the best months for sellers to put their homes on the market, as the highest proportion of homes listed in these months go on to find a buyer. Which can often mean sellers coming to market will make the most of this increased activity, and set a higher asking price as a result. This month’s price increase is in line with the seasonal average, indicating that sellers are taking a realistic approach, rather than setting over-optimistic asking prices.
But new sellers are competing against a decade-high number of other sellers trying to secure a buyer, meaning buyers starting their home search will be greeted with much more choice than they might have found in recent years. The “top-of-the-ladder” market (4-bed detached homes or any home with 5 bedrooms or more) has seen the biggest monthly average rise, with a 2.1% monthly increase. This compares to the +0.5% rise we’ve seen for typically smaller, first-time buyer properties.
Buyers enter final straight of the stamp duty race
With the end of March stamp duty deadline now mere days away, our analysis shows there’s a huge logjam of 575,000 homes waiting to complete the conveyancing process. With many of these buyers facing potentially thousands of pounds in additional moving costs.
Research shows that around 74,000 moves, including 25,000 first-time buyers, will just miss the March deadline and complete in April instead. Should they complete in April rather than before the 31 March deadline, it could amount to a combined £142 million in extra tax.
While the hope of an extension is fading, the Chancellor’s Spring Statement arrives just before the deadline, which could be an opportune moment for the government to announce a short extension – this would help those movers who had a reasonable expectation of beating the stamp duty deadline, but for the lengthy conveyancing timelines movers are currently facing.
What do the experts think?
Despite the looming tax changes, the wider property market outlook remains positive, with market activity showing improved activity levels, as well as more homes available for buyers to choose from.
What else happened in the housing market this month?
We’re continuing to see strong activity in the housing market. The number of sales being agreed is 9% higher than at this time in 2024, and the number of new sellers is now 8% ahead of this time last year. Both are positive indicators for continued market activity after stamp duty increases at the start of April.
New Spring buyers who won’t benefit from the current stamp duty regime will find that when they kick-start their search, they’ll be greeted with the best choice of properties for sale at this time of year since 2015. This increased choice is helping to create a more balanced market, though it does mean sellers need to be realistic about their pricing expectations.
Are you looking at selling your Solihull home? BU Homes is an independent Solihull Estate Agent based in Olton. We will provide you with the best marketing to reach buyers, providing stunning virtual tours, floors plans and professional photography to sellers. We were the 'Gold' winners at the British Property Awards for the Solihull region. Book your free property valuation today.
