Homebuyers have the widest choice of properties available to buy for a decade, according to Rightmove, with growing numbers of sellers listing their properties in the run up to Spring.
Whilst this is positive news for buyers, it means that sellers need to price their homes realistically if they want to stand out from the crowd. House prices have edged upwards in February, the property website said, although the 0.5% increase seen this month is lower than the 0.8% typically seen at this time of year. First-time buyer properties saw a small monthly decrease of 0.1% in average asking prices, whilst larger homes saw a 0.6% increase. The average price of all properties coming to market currently stands at £367,994.
Colleen Babcock, property expert at Rightmove said: “New sellers are showing some pricing restraint after a fast start to the year, being mindful of both the high level of seller competition and the looming stamp duty deadline. With the predicted conveyancing log-jam likely to cause some buyers to miss the deadline through no fault of their own, it would seem justifiable for the government to announce a short extension.”
Buyers at risk of missing stamp duty deadline
Many buyers are currently racing to complete their purchases before higher stamp duty costs kick in from April. First-time buyers currently don’t have to pay stamp duty on the first £425,000 of the property value when buying a home costing up to £625,000, with 5% stamp duty payable on the portion between £425,001 and £625,000. However, from 1st April, only the first £300,000 will be free of stamp duty.
You can check how much Stamp Duty you’ll be liable for after 1st April by using our Stamp Duty calculator.
There are currently more than 550,000 homes sold awaiting legal completion, according to Rightmove, 25% more than at this time last year. The average time it takes for a property transaction to complete is around five months, so many buyers have been trying since November to get their purchases over the line before the end of March.
A Rightmove spokesman said: “We’re hearing from estate agents that while some buyers may need to pull out of their transactions if they miss the deadline, many are proceeding with their purchases regardless, having factored in the potential additional costs.”
