Breaking Property News 05/03/25
Daily bite-sized proptech and property news in partnership with Proptech-X.
As we accelerate towards the new SDLT cliff edge on 31st of March 2025 – how is property holding up?
It is clear that there is a big squeeze on trying to ensure transdactions complete on or before the 31st of March to beat the incoming higher stamp duty levels, but how is this playing out in the general marketplace? Well Gareth Samples, CEO of The Property Franchise Group, (pictured) comments: “The market remains robust, with house prices supported by the year-on-year increase in activity seen at the start of 2025. Factors such as lower interest rates and wage growth have also contributed to a stronger foundation for sustained growth throughout the year.
“The momentum built up towards the end of 2024 has carried over into early 2025. This is partly due to first-time buyers rushing to meet the Stamp Duty deadline, as well as needs-based buyers who had been waiting for more favourable interest rates.
“While demand has risen, the supply of homes on the market has also increased, providing buyers with more choice and greater negotiating power. The larger number of properties available, coupled with the impending Stamp Duty deadline, is expected to keep price inflation in check.
Iain McKenzie, CEO of The Guild of Property Professionals, comments: “It’s encouraging to see the housing market’s continued resilience as we move into 2025, with both transaction levels and sales agreed figures showing year-on-year growth at the start of the year.
“The market remains active, driven by first-time buyers rushing to complete deals ahead of stamp duty changes and needs-based buyers who postponed decisions during 2024’s volatility. Strong earnings growth is also supporting activity. However, a greater supply of homes for sale and the impending stamp duty deadline are expected to keep price inflation in check.
“Both demand and supply have increased across all property types, though market dynamics vary. Detached houses are in growing demand, with an 18% year-on-year rise in the demand-to-supply ratio, while demand for flats has slightly declined since January 2024.
“Despite higher-than-expected CPI inflation, the Bank of England cut the base rate to 4.5% in early February, prompting several major banks to follow suit. This comes as a welcome relief after fixed-rate mortgage rates rose in early 2025, with some lenders reversing the cuts made in late 2024 following gilt yield spikes. Now, this trend appears to be shifting, with the lowest fixed-rate mortgages dipping below 4% for the first time in months as competition among lenders intensifies.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
You May Also Enjoy
Mortgage Lenders and Administrators Statistics – 2025 Q1
UK Finance later life mortgage lending update Q1 2025
Hidden Pitfalls Decreasing Your Home’s Value – top tips from Upstix CEO
Planning authority bias towards large housebuilders
AI planning tools will help solve the housing crisis