Your March 2025 Property Market Update

Welcome to the March 2025 edition of Property Market Insights by Quealy & Co. Estate Agents in Kent. We understand how important it is to stay informed about the property market, and we’re here to share valuable insights that highlight the latest trends.

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Market activity remains strong, even with impending changes to stamp duty.

The UK property market remains strong despite upcoming Stamp Duty changes. Rightmove reports a 15% increase in sales compared to last year, while Zoopla indicates a 10% year-on-year rise.

Nationwide reports that market activity has remained resilient despite affordability challenges. Transactions in the second half of 2024 are 14% higher than in 2023.

HMRC data indicates that UK residential transactions reached 95,110 in January 2025, a decrease of 1% from December.

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House prices are displaying mixed signals.

Halifax reports that house prices decreased by 0.1% in February, with the average property price now at £298,602. However, annual growth remains steady at 2.9%.

Nationwide indicates that UK home prices increased by 3.9% yearly and by 0.4% month over month, with the average house price at £270,493.

Zoopla highlights that house values have risen by 24% over the past five years—three times faster than flats, which have seen a 7% increase. This has resulted in a 30-year high in the price gap between houses and flats.

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Asking prices continue to be cautious.

Rightmove reports that property asking prices have increased by 0.5% (+£1,805), bringing the average to £367,994. This rise is relatively subdued for this time of year, as sellers exhibit some pricing restraint due to high competition and impending changes to Stamp Duty.

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The supply of housing has reached new heights.

Zoopla has reported the highest number of homes for sale in seven years, with an 11% increase in the overall market. This includes a 14% rise in flats compared to a 5% increase in houses. Additionally, Rightmove has confirmed that the number of available homes has reached a 10-year high, moderating the typical price surge usually seen at the start of the year.

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The mortgage market demonstrates strong resilience.

January was a record month for mortgage-in-principle applications on Rightmove, showing a 49% increase compared to January 2024. According to the Bank of England figures, mortgage approvals reached 66,189 in January, a slight decrease of 0.5% compared to the previous month but an 18.3% increase year-on-year. Additionally, Zoopla reports that mortgage repayments for flats are 43% lower than rental costs.

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Buyers continue to favour houses, even though there is a significant price difference.

Despite increasing price differences, buyers continue to prefer houses over flats. According to Zoopla, more than half of first-time buyers outside London are looking for three-bedroom homes by the end of 2024, an increase from two in five in 2017. Buyer demand is currently 8% higher than last year, according to Rightmove, and new sellers are up 13% year-on-year.

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Changes in stamp duty are influencing market behaviour.

The changes to Stamp Duty in April 2025 are impacting the housing market. Nationwide predicts a surge in transactions in March, followed by a decline in the following months.

Rightmove has alerted that there is a potential conveyancing backlog. Five hundred fifty thousand homes are awaiting completion, 25% more than last year.

According to Zoopla, half of homeowners can expect to pay an additional £2,500 per purchase, while the percentage of first-time buyers facing increased Stamp Duty has risen from 20% to 40%.

According to Rightmove, first-time buyers looking to purchase properties between £500,001 and £625,000 may face an additional cost of £11,250 if they miss the deadline.

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Summary: A market in transition

The UK property market is currently transitioning, and the upcoming Stamp Duty deadline presents opportunities and challenges. While market activity remains strong and prices are generally stable, the significant increase in available properties has led to more balanced market conditions.

We expect a transaction surge in March, followed by a possible slowdown. However, strong earnings growth and sustained buyer demand indicate that any weakness in the market after the deadline may be short-lived.

Furthermore, the widening gap between house and flat prices may influence buyer preferences. Increased competition among sellers makes it essential to price properties realistically in this evolving landscape.

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Moving Home in Kent?

Quealy & Co. brings you all the latest property market news each month. For a more localised property report for your specific postcode, please get in touch with the team on 01795 429836 or email hello@quealy.co.uk. We’d be happy to send you one for free.

You can also use our instant online valuation tool if you want a ballpark figure of your home's value to sell or to let: Click here.

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Note: The information in this article is based on data as of March 2025 and may change. Always seek professional advice for your specific circumstances.