Rightmove’s March House Price Index reports ‘resilient activity’ despite stamp duty threshold changes, with an increase in the number of buyers across the UK.
Mover activity is strong overall, with a 5% year-on-year increase in new buyers. The majority of regions in the Midlands, north of England, Wales and Scotland saw above average increases in demand, with smaller increases in the south of England. The number of new sellers coming to market is up by 4%.
The rush to complete before the stamp duty changes took effect was reflected in the queue of buyers, which fell by 24,000 (4%). For those who missed the 31st March deadline, the decreased threshold doesn’t appear to have acted as a deterrent – the number of agreed sales falling through remains steady and most buyers are proceeding to purchase.
A key finding of the report is the record-breaking price of properties coming to market – a 1.4% increase in March saw the average cost of a home rise to an all-time high of £377,182. Although buyer demand in London was lower than other regions, average asking prices remain significantly higher there than elsewhere, at £699,200.
The lowest prices can be found in the north east of England, where the average home costs £194,213. However, the year-on-year increase in the north east is also amongst the highest at 2.2%, and the 55 days it takes to find a buyer is bettered only in Scotland, with 37.
The report noted:
“In a sign of continuing market resilience, this month’s price increase is larger than the average April increase of 1.2%, despite the number of available homes for sale remaining at a 10-year high for the time of year. Whilst a seasonal increase in asking prices is a positive sign for the health of the market, new sellers need to be cautious of the high competition for buyers that they may face when setting their asking price.”
Trump’s tariffs remain a significant influencing factor on the market. Average mortgage rates remain high for now, with an average five-year fixed rate of 4.72%. ‘As it stands, if the Bank of England opts for further and faster rate cuts, starting in May this could lead to mortgage rates reducing more quickly than anticipated’, Rightmove acknowledges in the report.
Colleen Babcock, property expert at Rightmove, added:
“It’s important to remember that among records and national trends, Great Britain’s housing market is made up of thousands of diverse local markets, each uniquely responding to market changes and world events. London, for example, is likely to see greater knock-on effects from US tariffs than the rest of Great Britain, while Northern regions appear to be performing more strongly post-stamp duty rise. It’s difficult to predict what the next few months will bring, but if mortgage rates reduce more quickly, it would be a helpful boost to buyer affordability.”
