Navigating a Price Sensitive Spring Property Market

Given the unseasonably slow end to 2025 and the resulting pent-up demand that gathers, it’s no wonder that January started in a very positive way.  The Budget falling so late in the year resulted in Rightmove recording a 2.8% rise in asking prices between December and January – the largest New Year uplift on record.  

It’s not that buying and selling have suddenly become more affordable; it’s more that the current level of affordability has become the norm.  Surging markets create volatility, whilst this may feel great in the short term, it has wider impacts in the long term.  

Inflation has steadied, the base rate is likely to be trimmed during the year and mortgage product choice has become more competitive.  Again, this doesn’t mean we all have more money in our pockets, it just creates predictability – which gives people confidence.  After some rather turbulent years, a period of stability directly affects confidence, and confidence drives decisions.  

In the Spring Statement, the Office for Budget Responsibility published its house price inflation, which they suggest will be just over 2.5% until 2030/2031. This is broadly in line with growth in average incomes – again, nice and steady.  

Stamp Duty Reform, a subject which caused much speculation leading up to the last Budget, hasn’t been mentioned again.  Rightmove has already started looking ahead to the Autumn Budget later this year, when the main tax changes are usually announced. Colleen Babcock, Rightmove’s property expert, said: “We’d really like to see Stamp Duty properly looked at. “With around seven or eight months to go until the Autumn Budget, there’s time for the Government to give some serious thought about how the system could be improved. That could mean a more regionalised approach, higher zero-rate thresholds, spreading payments over a longer period, or even scrapping stamp duty altogether.  In its current form, stamp duty remains a major barrier to movement, which isn’t good for would-be buyers and sellers, or for the wider economy.” 

February activity remained strong.  According to TwentyEA data, UK wide sales agreed rose 15.3% month on month.  This is encouraging as it demonstrates commitment amongst buyers.  Supply continues to define the overall market narrative, with properties for sale running 19% above the six year February average. This gives buyers a choice the likes of which they haven’t seen in over a decade.  This makes for a very price sensitive market.  

With green shoots visible, lighter days ahead and confidence improving, we have noticed that people are now deciding to press on with plans.  How much of an impact the wider geoeconomic issues have, time will tell.  
For now, if moving is something that you are considering, we are here to help.  Contact your nearest branch for any help or advice.  


Source:
Estate Agent Today 
Opening The Gates - February Market Update
Photo by Yoksel �� Zok on Unsplash