Sales increase as buyers try to beat tax break deadline

Sales increase as buyers try to beat tax break deadline 

The next three months will see increased buyer activity in the housing market, as prospective purchasers seek to beat changes to stamp duty thresholds, according to property portal Zoopla.  

In her October budget, the chancellor Rachel Reeves lowered the threshold at which stamp duty is paid in England from £250,000 to £125,000. The first-time buyer threshold was also lowered from £425,000 to £300,000 for properties costing under £500,000. 

Zoopla said that home sales had already increased in the year to October with an expected 1.1 million sales during 2024 – 10% up on the previous year. House prices were also up by 1.5%. The website expects the number of transactions to rise by 5% next year with prices up by 2.5%. 

Zoopla attributes increased activity to pent-up demand in the run up to the budget, along with an increase in downsizing due to an ageing population and continued cost of living pressures. 

While strong buyer demand would normally lead to much higher prices, increased supply from the sale of rental properties and second homes has helped limit increases. 

As Richard Donnell, Zoopla’s executive director, said: “Higher income growth and lower mortgage rates have helped reset housing affordability faster than many expected over 2024. 

“This has supported an increase in the number of sales and house prices over the year which we expect to continue over 2025. 

“First-time buyers will remain an important buyer group, but existing homeowners looking to move will need more support to help realise their ambitions, with more and more having to look further afield to find better value for money.” 

Read more about this story on the Guardian website.