| Rightmove PLC (GB00BGDT3G23) | |||
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| 13.04.25 23:01:00 | Record high average price tag on a home in April after £5,000 monthly jump |  |
| The average price tag on a home has jumped by more than £5,000 in the space of a month to hit a new record high, according to a property website. Across Britain, the average asking price in April for a property coming on the market is £377,182, which is £5,312 or 1.4% higher than the average asking price of £371,870 in March. The figures were released by Rightmove, which said that this is a bigger-than-usual increase for the month of April, with a long-term average increase for the month of April at 1.2%. The record high comes despite stamp duty discounts becoming less generous for some buyers from April 1 onwards. Stamp duty applies in England and Northern Ireland. On the upside for home-buyers, some mortgage rates have been edging down in recent days, with Barclays cutting several rates below 4% on Friday last week. Global market volatility, after US President Donald Trump announced tariffs, has fuelled analysts’ expectations that the Bank of England could make more base rate cuts in the months ahead. April’s average asking price figure surpassed a previous record of £375,131, set in May 2024. Rightmove said that, when setting their asking price, new sellers still need to be cautious of the high competition for buyers. Colleen Babcock, a property expert at Rightmove said: “We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade high. “The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient. “Confidence from new sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price. “The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons. “Our research also shows that getting the price right the first time is key. Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.”Map shows average asking price changes across Britain (Rightmove/PA) Since the stamp duty increase, the level of agreed sales falling through has remained steady, according to Rightmove. The website said this indicates that there has been “no major pull-out” from agreed deals by first-time buyers and home-movers who were unable to complete before the tax rise. The last-minute rush to complete sales from those who were able to beat the deadline also means that the queue of buyers waiting to complete their purchase eased during March, the website said – marking the first time the queue has shortened during the month of March since the coronavirus pandemic in 2020. Story Continues However, the queue of buyers has now started to tick up again, Rightmove said. The website also said it is seeing a North/South divide in terms of trends. The majority of the Midlands and northern England regions, as well as Wales and Scotland, are seeing above-average increases in demand versus last year. By contrast, the higher-priced South West and South East are seeing smaller increases in buyer demand and prices, Rightmove said. It said London appears to be an outlier. Despite being the only region with fewer buyer inquiries than a year ago, average asking prices in the capital have jumped to a new record high, driven by inner London, Rightmove said. But it added that, with London typically being more exposed to the impact of global tensions, as well as currently seeing weaker demand trends, this price trend may fall back. The average asking price in London in April is just shy of £700,000, at £699,200. Rightmove said the full impacts of tariffs will play out over the coming weeks and months, and 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. Ms Babcock 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.” Phill Sandbach, director at estate agent John German in the Midlands, said: “March was a very busy month, with more completions than in the post-pandemic stamp duty holiday. “Solicitors worked really hard to get so many movers through. April has started off as a busy month for us, with market appraisal requests, viewings and offers across all of our East and West Midlands offices.” Alex Caddy, manager at Clarkes estate and letting agency in Dorset, said: “Naturally, those who may not be in a rush are testing the market with higher asking prices, in those cases viewing requests are far lower, indicating buyers are still price sensitive.” Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “We now progress into the spring and summer months, which typically deliver strong momentum for the sector.” View Comments |
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| 09.04.25 11:22:11 | People in the UK: have you moved away from the city and now returned? | |
| Brixham harbour, South Devon, England.Photograph: Sebastian Wasek/Alamy Data analysis from the property website Rightmove has found that London is once again the most searched-for location on the website, and the majority (58%) of people living there are looking to stay rather than to leave. This is a a reverse from five years ago, when in the early months of Covid lockdowns, would-be house buyers were looking for a move to coastal and rural areas as a bigger garden, access to nature and more room for home working became the priorities. However now many companies require staff to be more present in the office and some who moved out of the city have experienced buyers remorse. Callout View Comments |
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| 09.04.25 05:00:32 | Pandemic-fuelled shift to coast and country has gone into reverse | |
| The harbour at Port Isaac in north Cornwall, a village named as a property hotspot in early 2020.Photograph: Paul Felix/Alamy Back in the early months of Covid lockdowns, all the talk in property circles was of would-be housebuyers plotting a move to coastal and rural areas as city dwellers prioritised a bigger garden, access to nature and more room for home working. But, five years on, the reshaping of the housing market sparked by the pandemic has gone into reverse, with homes by the sea seemingly losing some of their lustre and fewer people looking to escape from cities, data shows. The property website Rightmove said that, while much had changed since 2020, one constant was a desire among many would-be buyers for a home with more space. Spool back to early 2020, and among the areas estate agents were naming as the new property hotspots were locations such as Port Isaac in Cornwall, Margate in Kent, Clevedon in north Somerset, the East Neuk of Fife on Scotland’s east coast, and Canford Cliffs, a suburb of Poole in Dorset. Rightmove said that in 2025, “many short-term trends brought about by the unique circumstances of lockdown have reversed”. It added: “Coastal homes are taking longer to find buyers, and price growth has stabilised as more supply has come on to the market – some likely from movers heading back to the city. At the same time, fewer people are looking to escape cities as life has returned to normal and the debate continues about remote versus office working.” Discussions about where you should be allowed to work from have become increasingly heated as a growing number of employers demand that staff attend the workplace more often, which has big implications for where people live. Related: How looser affordability rules may widen home ownership in the UK Rightmove said that by March 2021 Cornwall had overtaken London as the most searched-for area on the website for the first time. At the same time, under half (47%) of potential homebuyers in London were looking to stay in the capital, down from 59% a year earlier. Things look very different now: London is once again the most searched-for location on the website, and the majority (58%) of people living there are looking to stay rather than to leave. Homes near the sea are now taking longer to sell compared with the period immediately after the start of the pandemic. In coastal areas, the time it takes to find a buyer has gone up from an average of 52 days then to 73 days now. In addition, house price growth in coastal locations has cooled. Looking at a sample of more than 100 areas, Rightmove found that the average asking price for a home near the sea increased by 4.5% during the first year of the pandemic, well ahead of the average for the country as a whole. Story Continues But now, the latest average annual increase for coastal areas is 1%, in line with the rest of Britain. A few weeks into the pandemic, the estate agent Savills said the mass switch to working from home had proved that “you don’t need to be in London, or another city, five days a week”. However, research has previously indicated that some who bought during or just after the pandemic later suffered buyer’s remorse: a 2022 survey of those who moved during this period found that 12% believed they rushed into the decision and now regretted it, while a further 15% were not happy and were considering moving again. A separate study last year suggested that some of these movers subsequently sold up and moved back to the suburbs or city. In the immediate wake of the pandemic, many people saw the home working revolution as a potential opportunity to pursue a new or different lifestyle, often away from traditional town and city centres, said Nathan Emerson, the chief executive of the estate agent body Propertymark. But, he added, with lots of employers now wanting their staff to be based in centralised office locations, many people “are choosing metropolitan areas once again, where there are likely better transport links and a more competitive jobs market in many cases”. Rightmove also said that over the past five years, semi-detached and detached houses had seen bigger price rises than flats, suggesting that “there is still a premium for having more space”. Meanwhile, the keywords that buyers have been using in their search for a home – such as “garage” and “annexe” – have largely stayed the same, and relate to having more space. View Comments |
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| 09.04.25 04:00:00 | The housing market is about to come roaring back. Buy this stock to cash in | |
| Rightmove website Questor is The Telegraph’s stockpicking column, helping you decode the markets and offering insights on where to invest. Rightmove has proved to be a thoroughly disappointing tip. The online property portal’s share price has risen by just 14pc since our initial buy recommendation all the way back in October 2019. This represents a modest seven percentage point outperformance of the FTSE 100 index, of which the firm is a member. A tough operating environment has, of course, contributed to the stock’s lacklustre performance. A restrictive monetary policy implemented in response to rampant inflation has made property far less affordable over recent years. This has weighed on the number of housing transactions, thereby putting pressure on the financial performance of the estate agents and housing developers on which the firm relies. Now, though, there are signs that the property market is in the midst of a rebound. Residential property transactions in the 10 months to February this year, for example, are up 15pc versus the same period of the prior year. Although they are still around 4pc below pre-pandemic levels, further increases are likely to be ahead over the coming years. Crucially, inflation is set to return to the Bank of England’s 2pc target over the medium term. This should provide scope for further interest rate cuts that gradually make property more affordable. When combined with the positive impact on wages that typically follows a period of sustained monetary policy easing, as well as a moderation of cost of living woes as inflation subsides, this should mean that demand for property increases. Given Rightmove’s extremely dominant market position, it is well placed to benefit from rising transaction volumes. Indeed, more than 80pc of all visits to property portals during 2024 were to its website. This provides it with a significant amount of pricing power, since estate agents and developers who are unwilling to pay for its variety of products and services, have limited alternatives. The company’s strong competitive position contributed to a 7pc increase in average revenue per advertiser in its latest financial year. Although this did not translate into a particularly strong growth rate in earnings, with profits rising by just 4pc on a per-share basis, the firm is forecast to post a 12pc annualised increase in its bottom line over the next two years as market conditions improve. A double-digit forecast rise in earnings helps to justify what is undoubtedly a lofty market valuation, with Rightmove’s shares currently trading on a price-to-earnings ratio of 26. Story Continues While this is significantly higher than many of its FTSE 100 peers, particularly in the aftermath of the index’s recent slump, it is nevertheless substantially lower than the stock’s rating of 32.9 at the time of our initial tip over five years ago. This suggests that there is still scope for the share price to rise further as the company gradually delivers on its potential. And with it planning to reinvest heavily in new products and services, including those using artificial intelligence, it would be unsurprising if the firm’s competitive position continues to improve. This could provide a material boost to investor sentiment and, as a result, bolster its share price performance. The company has the financial means to overcome an uncertain near-term operating environment while inflation and interest rates remain elevated. Its net cash position, for example, rose from £31m to £35m over the past year. Clearly, its share price could exhibit heightened volatility in the short run as the exact timing and impact of monetary policy easing remains unclear. And with changes to stamp duty having recently been implemented, as well as tax increases that may act as a drag on the rate of wage growth over the coming months, the property market continues to face a rather opaque near-term future. On a long-term view, though, Rightmove still offers investment potential. Its extremely dominant market position means it is set to benefit from an improving operating environment as an era of sustained interest rate cuts bolsters housing transactions following their recent lull. Therefore, while the stock has proved to be a huge disappointment since our original tip, it nevertheless remains a worthwhile purchase. Questor says: buy Ticker: RMV Share price at close: 680.8p Read the latest Questor column on telegraph.co.uk every weekday at 5am. Read Questor’s rules of investment before you follow our tips. View Comments |
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| 08.04.25 23:01:00 | Seaside homes ‘take three weeks longer to sell on average than during pandemic’ | |
| Homes located near the sea are now taking three weeks longer to sell on average than they did during the “race for space” fuelled by the coronavirus pandemic, according to a property website. Rightmove said the speed at which homes in coastal areas are finding buyers has slowed, from an average time of 52 days in 2021 to 73 days in 2025 – a difference of 21 days, or three weeks. A report from the website looked at how some trends seen during the pandemic have changed. More flexible working patterns and a general reassessment of living priorities during the pandemic helped to fuel a surge in popularity for areas by the coast and countryside. Across a sample of more than 100 coastal areas across Britain, the average asking price for a home near the sea increased by 4.5% annually in March 2021, nearly double the 2.7% yearly growth seen across the whole of Britain over the same period, as demand rose. Now, in 2025, average asking prices have risen by 1% across coastal areas compared with last year, in line with the rest of Britain, Rightmove said. The website has also seen changing trends in London. In March 2021, less than half (47%) of potential home-buyers in London were looking to stay in the capital, versus 59% the year before, Rightmove said. But London is once again the most searched-for location on Rightmove, and its data indicates the majority (58%) of would-be movers living there are looking to remain in the capital. The data was based on inquiries made by people based in London via Rightmove to estate agents. In March 2021, Cornwall overtook London as the most searched-for area on Rightmove, but now London is once again the most searched-for location, the website said. Looking across Britain, first-time buyers may find they have more “borrowing power” than they did five years ago, the website said. Since March 2020, the average asking price for a typical first home has increased by 17%, from £195,463 to £227,965. Meanwhile, over the past five years, average wages have grown at a faster rate, at 30%, Rightmove said. However, potential first-time buyers may also face bigger hurdles to raise a deposit. Average rents have jumped by 42% over the past five years, making finances more challenging for renters, including those who are trying to save up to buy a home. The average five-year fixed mortgage rate is 4.73%, more than double the 2.15% it was five years ago, according to Rightmove’s data. Over the past five years, semi-detached homes have risen the most in terms of their price tag (by 23% on average), compared with a smaller increase for flats (by 7% on average), suggesting there is still a premium for having more space, the website said. Story Continues The top keyword in buyer searches on Rightmove is still “garage”, the same as it was in March 2020. In the rental market, “pets” is still the most popular search keyword on Rightmove, as it was in March 2020. Searches for rental properties with “bills included” have dropped out of the top five most common searches on Rightmove. In 2022 such searches topped the list, as households grappled with living cost shocks. Steve Pimblett, Rightmove’s chief data officer, said: “Five years on from the pandemic, many short-term trends brought about by the unique circumstances of lockdown have reversed. “Coastal homes are taking longer to find buyers and price growth has stabilised as more supply has come on to the market, some likely from movers heading back to the city. “At the same time, fewer people are looking to escape cities, as life has returned to normal, and the debate continues about remote versus office working.” Nathan Emerson, chief executive at property professionals’ body Propertymark, said: “Directly following the pandemic, many people saw the home working revolution as a potential opportunity to pursue a new or different lifestyle, often away from traditional town and city centres, as there was little need to be present within a physical office location five days a week. “As time has progressed, substantial numbers of employers are now starting to ask their employees to make a return to centralised office locations, thus reversing the trend of five years ago for many people, and they are choosing metropolitan areas once again, where there are likely better transport links and a more competitive jobs market in many cases.” View Comments |
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| 31.03.25 23:02:14 | Bigger stamp duty bills for some home buyers as discounts shrink | |
| Stamp duty discounts have shrunk, adding thousands of pounds to the costs paid by some home buyers. The “nil rate” threshold for first-time buyers has reduced from £425,000 to £300,000 from Tuesday, and for home movers, the zero rate threshold has halved from £250,000 to £125,000. Stamp duty applies in England and Northern Ireland. Bank of England figures released on Monday showed that the number of mortgage approvals made to home buyers – which are an indication of future lending – fell ahead of the stamp duty deadline. Some 65,500 mortgage approvals for house purchases were recorded in February, which was around 600 lower than in January, the Bank’s Money and Credit report said. It was the lowest monthly figure recorded since August 2024. Richard Donnell, executive director at property website Zoopla, said: “Mortgage approvals have slowed in the wake of the rush to beat the stamp duty deadline and are now recovering after the seasonal slowdown over December. “We expect approvals to continue recovering towards 80,000 a month as the market returns to normal. Zoopla’s latest data shows that sales agreed are up 5% over the last year with more sales agreed driving continued demand for mortgages to fund sales.” Mr Donnell has previously suggested that home buyers will expect to reflect extra stamp duty costs in their offers, typically looking to “split” the cost with the seller. In February, Zoopla calculated that the proportion of first-time buyers in England and Northern Ireland who will need to pay stamp duty will double from April. The firm estimated the share of first-time buyers paying the tax will jump from 21% to 42%. The proportion of existing homeowners buying a new home as their main residence who will be liable to pay stamp duty will increase from 49% to 83%, according to Zoopla.(PA Graphics) HM Revenue and Customs (HMRC) figures released last week showed a surge in sales going through as buyers rushed to beat the deadline. An estimated 108,250 home sales took place in February – 28% higher than February 2024 and 13% higher than January 2025. Credit information company Experian has also released data showing the number of mortgage applications in the final quarter of 2024 jumped by nearly a third (32%) compared with the same period in 2023. John Webb, a consumer affairs expert at Experian UK and Ireland, said: “Our data suggests that consumers have been quite resilient, with a significant increase in mortgage applications in the last quarter of 2024 compared to the same period in 2023. “However, rising house prices in some areas of the country have forced first-time buyers to look further afield to get on to the property ladder.” Story Continues Rightmove previously estimated that more than 25,000 first-time buyers in England would miss the stamp duty deadline at the end of March, completing their transaction instead in April. The website also estimated that nearly 74,000 home movers in England would just miss the deadline and complete in April. Calculations by Rightmove show first-time buyers in London who are looking to escape stamp duty charges could be particularly affected by the change in the stamp duty thresholds. The website estimates that less than one in 10 (9%) homes on the market in the capital are priced under the new £300,000 nil rate threshold, compared with 27% which were under the previous £425,000 threshold. By comparison, in the North East of England, nearly three-quarters (74%) of homes for sale remain under the threshold from Tuesday, down from 87% previously, Rightmove estimated. There may be some consolation for buyers who have missed the stamp duty deadline, with some lenders launching mortgage deals with cash sweeteners. Yorkshire Building Society has unveiled a new mortgage range, offering first-time buyers up to £6,250 cashback. The society’s director of mortgages, Ben Merritt, said the move “is designed to help cushion that blow (of the stamp duty changes) for the majority of aspiring homeowners”. Nottingham Building Society has new mortgages offering up to £5,000 cashback. Skipton Building Society has also launched a new cashback range. Santander UK said on Friday that it had eased its mortgage affordability rules in response to a call from the Financial Conduct Authority (FCA) for lenders to design their rates to best meet customers’ needs. Some customers will be able to borrow between £10,000 and £35,000 more than previously, the bank said, depending on individual circumstances and subject to affordability checks and loan-to-income limits. Matt Smith, Rightmove’s mortgage expert said: “Average mortgage rates have remained steady since last week’s spring budget and unexpected drop in inflation rate.” He added: “The short-term outlook for rates remains much improved compared with last year. However, the markets are currently less certain about a second (Bank of England base rate) cut of the year in May, which may get pushed to June. Once a cut does happen, it could help to push forward further mortgage rate cuts from lenders.” Chantelle Elmi, a financial planner at Octopus Money, said: “While today’s stamp duty changes are another setback for first-time buyers, they provide an impetus for younger generations to take charge of their financial future.” Nicholas Mendes, mortgage technical manager at broker John Charcol said: “If you’re coming to the end of your current fixed-rate deal, now’s a great time to start exploring your options. Lenders are sharpening their rates, particularly in the remortgage space, so shopping around could lead to a better deal than you might expect.” View Comments |
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| 31.03.25 23:02:09 | Price points where April 1 stamp duty changes could hit hardest | |
| Some home buyers face higher stamp duty costs from Tuesday, and website Rightmove has calculated the impact at different price points. Its calculations indicate that first-time buyers in England and Northern Ireland, where stamp duty applies, making purchases for £625,000 and approaching that figure could find it particularly painful financially if they miss the deadline. The figures show the property price, the previous stamp duty cost, the new stamp duty cost from April 1, and the increase in charge for non-first-time buyers, followed by the same figures for first-time buyers: £125,000, £0, £0, £0, £0, £0, £0 £250,000, £0, £2,500, £2,500, £0, £0, £0 £425,000, £8,750, £11,250, £2,500, £0, £6,250, £6,250 £500,000, £12,500, £15,000, £2,500, £3,750, £10,000, £6,250 £625,000, £18,750, £21,250, £2,500, £10,000, £21,250, £11,250 £750,000, £25,000, £27,500, £2,500, £25,000, £27,500, £2,500 £925,000, £33,750, £36,250, £2,500, £33,750, £36,250, £2,500 £1,000,000, £41,250, £43,750, £2,500, £41,250, £43,750, £2,500 View Comments |
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| 31.03.25 01:45:52 | Home buyers ‘may look to split higher stamp duty costs with sellers’ | |
| Some home buyers putting in offers from Tuesday may ask to split the cost of higher stamp duty rates with sellers, a property market expert has said. From April 1, nil rate stamp duty discounts will shrink, with first-time buyers seeing the zero rate threshold reduce from £425,000 to £300,000 and home movers seeing theirs halve from £250,000 to £125,000. Stamp duty applies in England and Northern Ireland. Richard Donnell, executive director at Zoopla, said: “Home buyers will expect to reflect this extra cost in their offers, typically looking to split the cost with the seller. On the whole the amounts are not large, but the overall impact will keep house price growth in check over 2025.” Mr Donnell said housing market activity continues to increase despite the ending of stamp duty relief. He said: “Zoopla’s latest data shows sales agreed up 5% year-on-year, with many more homes for sale. There is a stamp duty hangover effect in London where first-time buyers face the highest increase in costs of buying. We expect sales to grow 5% over 2025 to 1.15 million.” In February, Zoopla calculated that the proportion of first-time buyers in England and Northern Ireland who will need to pay stamp duty will double from April. The firm estimated the share of first-time buyers paying the tax will jump from 21% to 42%. The proportion of existing homeowners buying a new home as their main residence who will be liable to pay stamp duty will increase from 49% to 83%, according to Zoopla. HM Revenue and Customs (HMRC) figures released last week showed a sales surge as buyers rushed to beat the deadline. An estimated 108,250 home sales took place in February – 28% higher than February 2024 and 13% higher than January 2025. Tom Bill, head of UK residential research at Knight Frank, said: “The jump in February proves that nothing moves the UK housing market quite like a change in stamp duty.” Jason Tebb, president of OnTheMarket, said: “Increased stock, as sellers try to take advantage of the spring market, means buyers have more choice than has been the case for a while. This is putting them in a stronger negotiating position and they remain price sensitive.”(PA Graphics) Credit information company Experian released data on Monday showing the number of mortgage applications in the final quarter of 2024 jumped by nearly a third (32%) compared with the same period in 2023. John Webb, a consumer affairs expert at Experian UK and Ireland, said: “Our data suggests that consumers have been quite resilient, with a significant increase in mortgage applications in the last quarter of 2024 compared to the same period in 2023. Story Continues “However, rising house prices in some areas of the country have forced first-time buyers to look further afield to get on to the property ladder.” Colleen Babcock, a property expert at Rightmove, said: “Most affected by the higher charges will be first-time buyers in higher-priced areas of the South, where some could pay up to £11,250 more in stamp duty from April. “London, one of the most affected areas due to higher property prices, is where we’re seeing more first-time buyers going through the completion process compared to last year, many who will spend the coming days trying to beat the deadline. “Agents tell us they don’t expect a major impact on activity after March’s deadline, and that they have been working with buyers and sellers to factor in additional charges.” Calculations by Rightmove show first-time buyers in London who are looking to escape stamp duty charges could be particularly affected by the changes from Tuesday. The website estimates that less than one in 10 (9%) homes on the market in the capital are priced at under the £300,000 nil rate threshold kicking in from April 1, compared with 27% which are under the current £425,000 threshold. By comparison, in the North East of England, nearly three-quarters (74%) of homes for sale will still be under this threshold from April 1, down from 87%, Rightmove estimated. According to research from Barclays, home buyers estimate they will pay £6,512 in additional fees on average if their sale is not completed before April 1. The Opinium survey of 2,000 people commissioned by the bank found that four in 10 people cited the cost of a deposit as one of the biggest barriers to owning a home, and 23% of younger adults in the Gen Z generation – aged 18 to 27 – are doing additional jobs to help raise a deposit. There may be some consolation for buyers missing the March 31 deadline, with some lenders launching mortgage deals with cash sweeteners. Yorkshire Building Society unveiled a new mortgage range this week, offering first-time buyers up to £6,250 cashback. The society’s director of mortgages, Ben Merritt, said the move “is designed to help cushion that blow (of the stamp duty changes) for the majority of aspiring homeowners”. Nottingham Building Society has new mortgages offering up to £5,000 cashback. Skipton Building Society has also launched a new cashback range. Santander UK said on Friday last week that it had eased its mortgage affordability rules in response to a call from the Financial Conduct Authority (FCA) for lenders to design their rates to best meet customers’ needs. Some customers will be able to borrow between £10,000 and £35,000 more than previously, the bank said, depending on individual circumstances and subject to affordability checks and loan-to-income limits. View Comments |
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| 28.03.25 10:00:42 | Home buyers have just days left to sidestep rising stamp duty costs | |
| Home buyers have just days left to complete deals before potentially being clobbered with thousands of pounds in extra stamp duty costs. From April 1, “nil rate” stamp duty discounts for home buyers will shrink. Among the changes, first-time buyers will see their “nil rate” band reduce from £425,000 to £300,000 and home movers will see their zero rate threshold halve from £250,000 to £125,000. Stamp duty applies in England and Northern Ireland. Colleen Babcock, a property expert at Rightmove, said: “More than half a million homes are currently going through the process of legally completing.(PA Graphics) “Home movers who are in England, and still have a chance to beat the March 31 stamp duty deadline, will be rushing to finalise their paperwork, and doing all they can to avoid paying higher tax charges from April. “Most affected by the higher charges will be first-time buyers in higher-priced areas of the South, where some could pay up to £11,250 more in stamp duty from April. “London, one of the most affected areas due to higher property prices, is where we’re seeing more first-time buyers going through the completion process compared to last year, many who will spend the coming days trying to beat the deadline. “Agents tell us they don’t expect a major impact on activity after March’s deadline, and that they have been working with buyers and sellers to factor in additional charges. “There are still many areas of England where there is good availability of homes under the stamp duty-free threshold for first-time buyers. “Overall, we’re still seeing greater demand from new buyers than a year ago, which is encouraging for the rest of the spring market.” HM Revenue and Customs (HMRC) figures released on Friday confirmed the huge surge in deals before the changes come in. Official data showed there were more than 108,000 homes bought and sold in February, a 28% jump compared with the same period last year. The figure also marks a 13% increase compared with January. It is the highest February figure since 2022, before interest rates spiked significantly driving up the cost of taking out a mortgage. Calculations by Rightmove show how first-time buyers in London who are looking to escape stamp duty charges could be particularly affected. The website estimates that less than one in 10 (9%) homes on the market in the capital are priced at under the £300,000 “nil rate” threshold kicking in from April 1, compared to 27% which are under the current £425,000 zero stamp duty threshold. By comparison, in the North East of England, three-quarters (74%) of homes for sale will still be under this threshold from April 1, down from 87% currently, Rightmove estimates. Story Continues According to research from Barclays, home buyers estimate they will pay £6,512 in additional fees on average if their sale is not completed before the April 1 deadline. The Opinium survey of 2,000 people commissioned by the bank found that four in 10 (40%) people cite the cost of a deposit as one of the biggest barriers to owning a home and 23% of younger adults in the Gen-Z generation (aged 18 to 27) are undertaking side hustles to help raise a home deposit. On average, UK homeowners who had used additional strategies to get on the property ladder faster, such as investing in financial products, said their efforts had helped them buy a property around two years earlier than they had initially expected. Law firm Taylor Rose, which is headquartered in Peterborough and has offices in London, said it has seen conveyancing instructions nearly double in the first two months of this year, compared with the same period a year earlier. Hannah Wright, head of new business at Taylor Rose, said solicitors are “working around the clock” to ensure completions can take place before the end of March. She added: “But even after the threshold changes, we predict that demand will remain high as we move into spring, and we expect a very busy period for the conveyancing sector.” For those who fail to meet the deadline, there may be some consolation from some lenders launching mortgage deals with cash “sweeteners” in recent days. Yorkshire Building Society unveiled a new mortgage range this week, offering first-time buyers up to £6,250 cashback. The society’s director of mortgages, Ben Merritt, said the move “is designed to help cushion that blow (of the stamp duty changes) for the majority of aspiring homeowners”. Nottingham Building Society has launched new mortgages offering up to £5,000 in cashback to help soften the blow for buyers. Skipton Building Society has also launched a new cashback range. Charlotte Harrison, CEO of home financing at Skipton Building Society, said that to help buyers complete deals in time “our teams will work round the clock, doing extra hours”. Richard Donnell, executive director at Zoopla, said that while the stamp duty change “will boost government revenues, it does risk dampening activity in some parts of the market”. He continued: “Home buyers will expect to reflect this extra cost in their offers, typically looking to split the cost with the seller. On the whole the amounts are not large, but the overall impact will keep house-price growth in check over 2025.” In February, Zoopla calculated that the proportion of first-time buyers in England and Northern Ireland who will need to pay stamp duty will double from April. Zoopla estimates the share of first-time buyers paying the tax will jump from 21% to 42%. Meanwhile, the proportion of existing homeowners buying a new home as their main residence who will be liable to pay stamp duty will increase from 49% to 83%, according to Zoopla’s calculations. Overall Zoopla estimates that the stamp duty changes could add an extra £1.1 billion annually to government coffers. The website’s analysis was based on buyer inquiries to estate agents and property prices and excludes the impact of those buying additional homes. View Comments |
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| 28.03.25 06:00:11 | Price points where home buyers could feel the most pain from stamp duty rises | |
| Property website Rightmove has calculated the impact of higher stamp duty charges from April 1 at different property price points. Its calculations indicate that first-time buyers in England and Northern Ireland, where stamp duty applies, making purchases for £625,000 and approaching that figure could find it particularly painful financially if they miss the April 1 deadline. The figures show the current stamp duty charge, the stamp duty charge from April 1 2025 and the additional charges paid for home movers; followed by the same figures for first-time buyers: £125,000, £0, £0, £0, £0, £0, £0 £250,000, £0, £2,500, £2,500, £0, £0, £0 £425,000, £8,750, £11,250, £2,500, £0, £6,250, £6,250 £500,000, £12,500, £15,000, £2,500, £3,750, £10,000, £6,250 £625,000, £18,750, £21,250, £2,500, £10,000, £21,250, £11,250 £750,000, £25,000, £27,500, £2,500, £25,000, £27,500, £2,500 £925,000, £33,750, £36,250, £2,500, £33,750, £36,250, £2,500 £1,000,000, £41,250, £43,750, £2,500, £41,250, £43,750, £2,500 View Comments |
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