Property News Feb 25: Buyers Rush To Complete

Welcome to this month’s market update! In this edition, we’ll take a look at the key trends we’ve observed in the first two months of 2025, explore the impact of the upcoming Stamp Duty deadline, and share our expectations for the busy months ahead.

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Manning Stainton

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Market Overview: A Strong Start to the Year

As anticipated, the property market has been exceptionally active at the start of 2025. According to whole-market data from Twenty EA, we’ve seen:

A slight reduction in new property listings — down 2% compared to this time last year.
A significant increase in sales activity — 10% more properties sold than in the first two months of 2024.

This trend is reflected in the data across the areas Manning Stainton serves. While fewer properties are entering the market, those that do are selling quickly, which has naturally led to early signs of price growth.

Data from Twenty EA shows that the average asking price has risen by 6.4% year-over-year, equating to an increase of around £16,000. While this may seem high, it’s likely influenced by stronger movement in the mid-to-higher end of the market. In more practical terms, average price growth appears to be closer to 3–4% year-over-year, aligning with reports from Halifax and Nationwide. The Land Registry, though slightly delayed, reported a 5% annual increase as of December. For properties in our area, this translates to an increase of approximately £11,000 to £13,000 on the average home price.

The Stamp Duty Deadline: A Temporary Surge?

With the Stamp Duty relief set to end on March 31st, it’s important to consider how this might be influencing current market activity. As a reminder:

The threshold for Stamp Duty will revert from £250,000 to £125,000.
After this date, buyers will pay 2% on the value between £125,001 and £250,000.
For example, purchasing a £250,000 property after the deadline would incur an additional £2,500 in Stamp Duty costs.

When we factor in the uptick in first-time buyer registrations earlier this year and the increased sales activity, it’s clear that the approaching deadline is contributing to a short-term flurry of transactions.

However, our view is that while the Stamp Duty deadline is a factor, it is not the primary driver of price growth or heightened activity. The market has been on a steady upward trajectory since last year, and we expect this momentum to continue even after the March deadline passes. Although we may see a brief cooling-off period, we anticipate robust market conditions and steady price growth as we move into the spring and summer months.

Looking Ahead

Overall, the market outlook remains positive. Demand is high, properties are selling swiftly, and prices are showing healthy, sustainable growth. While the Stamp Duty deadline may cause a temporary spike in activity, the underlying market fundamentals suggest that this is part of a broader, ongoing trend rather than a short-term anomaly.

We’ll continue to monitor the market closely and provide updates as the year unfolds. As always, if you have any questions or would like to discuss your property plans, feel free to reach out.

Until next month!