The housing market has made the strongest New Year start in three years with sales agreed up 12% on 2024, Zoopla has revealed.
It says the key reason for this has been a rush to avoid higher Stamp Duty rates in April, leading buyers to settle deals before they must pay more tax.
The ‘nil rate’ Stamp Duty band for home movers will fall from £250,000 back to £125,000 from 1 April, and for first-time buyers, the threshold will go down from £425,000 to £300,000.
Also, concerns about higher mortgage rates do not appear to be affecting the market.
Zoopla says homes for sale are also 10% higher than 12 months ago, and the number of properties listed by each estate agency branch is the highest for seven years, while demand for homes is 13% higher than the same time last year.
Also, the average UK house price is now £267,700, an increase of £5,200 compared to 2024, following a £2,400 decline in 2023.
These are of course national statistics and there will be wide variations throughout the county and Zoopla report the largest increase has been in Northern Ireland followed by the North West.
Some buyers are trying to get their transaction over the line before April. While some may have preferred to wait longer for mortgage rates to ease further, the looming deadline has motivated them to accelerate their plans.
“The increased demand, coupled with an improving economic outlook, is helping to sustain house prices. While we may see demand moderate somewhat after the Stamp Duty changes, factors like the anticipated interest rate cuts are expected to bolster market confidence.”
Richard Donnell Executive Director at Zoopla reports
“2025 has started well, better than 2024 and 2023 which bodes well for market activity over the rest of the year, supported by evidence of more people looking to move.
“It is important not to read too much into the increase in Stamp Duty for more buyers from April as three in five first-time buyers will still pay nothing from April.”
Here at DowlingDodd we have certainly found this January to have been the busiest for any years.
Compared with January 2024 this month our instructions from clients have increased by 142% and compared with January 2023 by 250%.
Julian Crosby our Managing Director suggests that there are several reasons for this increase in business:
“We have expanded our team and now have four surveyors covering the county and I feel we have increased our market share with clients increasingly looking for an experienced surveyor with detailed knowledge of the area and properties in Cornwall. The increase in Stamp Duty due soon is inevitably leading to some buyers bringing forwards their decision to move to try and beat the increase but overall, here at DowlingDodd we feel in underpins the fact that the market in Cornwall is strong with demand from local and out of county buyers and this all bodes well for the coming year.
A note of caution though is that the market remains price sensitive especially with the increase in supply sellers need to be realistic with their asking prices otherwise their property can easily stick in the market and become stale.
As always if moving and buying its important to obtain the best possible advice particularly if moving into an area you are unfamiliar with.
Our surveyors are always on hand to help you through the process so if moving now or soon call Julian, Paul, Richard or Nathen to discuss your requirements and we can advise you on the best survey to suit your need.
