Buyer’s market keeps house prices in check in February
House prices rose by less in March as the number of homes on sales rose faster than demand, according to fresh data.
The average house price in the UK ticked up by 1.8 per cent in February versus 1.9 per cent in March, while the number of homes available rose 11 per cent year on year, according to Zoopla’s March house price index.
“Buyers have a wide choice of homes for sale which will keep price inflation in check. Sellers need to be very careful in how they price their homes if they are serious about moving in 2025” research director at Zoopla, Richard Donnell, said.
The supply-demand imbalance is uneven across the country, Zoopla said, with London supply far above demand but supply outpaced by demand in the West Midlands and North West.
The housing platform suggested that London is suffering from a ‘stamp duty hangover’ in the wake of the first-time buyer rush to beat the 1 April stamp duty deadline.
The nil rate stamp duty threshold for first time buyers, which is currently £425,000, will return to its previous level of £300,000 on March 31.
The maximum purchase price for which First-Time Buyers Relief can be claimed will also return to £500,000, from £625,000.
The higher stamp duty has fuelled house price growth since its announcement last October, so much so that some estate agents have suggested we won’t get an accurate picture of the housing market until after April.
But Donnell said at this stage, he expects house price growth to “moderate further” as supply grows and higher stamp duty filters through the market.
“A slowing in house price growth is not a major concern although the market needs some growth in prices to encourage sellers to come to market and buyers to make realistic offers on homes for sale.”