Keep knowledgeable with free updates
Merely signal as much as the UK property myFT Digest — delivered on to your inbox.
Agreed UK property gross sales jumped by virtually a 3rd yr on yr on the finish of 2024 as patrons rushed to keep away from the rise in stamp obligation from subsequent April, in response to knowledge from Zoopla.
Analysis by the property portal reported on Monday that there have been 283,000 gross sales agreed however not but accomplished as of December 14, the most important gross sales pipeline in 4 years and up by 30 per cent on the top of 2023.
Patrons’ inquiries have been up 21 per cent in December in contrast with the identical interval final yr. The corporate attributed the 2 traits to the incoming rise in stamp obligation, which was set out by chancellor Rachel Reeves in her October Budget.
Richard Donnell, govt director at Zoopla, stated: “There’s a sizeable pipeline of gross sales that can full within the first half of 2025 with many hoping to keep away from greater stamp obligation prices from subsequent April.”
“Patrons and sellers returned to the housing market in 2024 having delayed strikes within the face of upper mortgage charges,” he added.
Reeves confirmed within the Price range {that a} non permanent stamp obligation vacation would finish in March. In consequence, first-time patrons, for instance, will from April 2025 begin paying the levy for properties value £300,000 or extra, as a substitute of £425,000 at current.
Anticipation of adjustments to the stamp obligation regime helped carry mortgage approvals to their highest degree since August 2022 in October, in response to separate knowledge revealed by the Financial institution of England.
Matt Thompson, head of gross sales at Chestertons, stated the property company was “seeing one of many busiest Decembers in years when it comes to purchaser demand”.
“That is principally pushed by first-time patrons who’re eager to get on the property ladder earlier than subsequent yr’s adjustments to stamp obligation, but additionally by second-steppers together with younger households, desirous to upsize,” he added.
UK home costs rose 3.7 per cent year on year in November, the quickest annual progress since November 2022, in response to separate knowledge revealed by Nationwide earlier in December.
Zoopla reported an additional acceleration in annual home worth progress in December, in contrast with the earlier month. Nevertheless it additionally famous that patrons grew to become extra price-sensitive after the Autumn Price range and amid rising uncertainty over the outlook for mortgage charges.
Patrons paid on common 3.6 per cent beneath a property’s asking worth in December, Zoopla knowledge confirmed, up from 3.2 per cent in the summertime.
Mortgage charges have ticked up since November over issues about cussed inflation, which has elevated monetary markets’ expectation that the Financial institution of England shall be cautious in chopping rates of interest subsequent yr.
The central financial institution held its benchmark rate at 4.75 per cent final week, after two reductions because the summer season. After the most recent vote, BoE governor Andrew Bailey stated “heightened uncertainty within the economic system” meant policymakers couldn’t “decide to when or by how a lot we’ll lower charges within the coming yr”.
Zoopla expects UK home costs to rise by 2.5 per cent in 2025. Thompson forecast progress of three.4 per cent, saying that “improved affordability, pent-up demand and renewed confidence available in the market ought to present assist for regular progress in property values”.
