Asking Price Growth Slows as Sellers Face Increased Competition and Stamp Duty Deadline.

The pace of asking price growth has eased as the approaching stamp duty deadline influences seller behaviour, according to the latest market data from Rightmove.

This month, the average asking price for properties listed for sale increased by 0.5% (£1,805) to £367,994, a relatively modest rise for this time of year. The slowdown is attributed to heightened competition among sellers, who are adjusting their price expectations to attract buyers ahead of the deadline. Rightmove also reports that the number of available homes per estate agency branch is at a 10-year high, giving buyers more options and reducing sellers’ ability to push prices higher.

Stamp Duty Impact Varies by Buyer Type

The upcoming stamp duty changes will not affect all buyers equally. Many first-time buyers in lower-priced areas will remain unaffected, as many homes in these regions will continue to be exempt from stamp duty. However, buyers looking to purchase homes priced between £500,001 and £ 625,000 face additional costs of up to £11,250 if they miss the deadline and no extension is granted.

Rightmove anticipates a conveyancing backlog as some buyers rush to finalize transactions before the deadline.

"New sellers are showing caution with pricing as they navigate strong competition and, in England, the looming stamp duty deadline, "said Rightmove’s Colleen Babcock. "Agents report that many sellers are tempering their price expectations to align with shifting market conditions, which is a smart move to maintain buyer interest and sustain activity levels. "Calls for Stamp Duty Reform and Faster Transactions Babcock also highlighted the ongoing debate surrounding stamp duty reform, suggesting that regional variations in stamp duty charges could help address disparities in affordability. "With the predicted delays in the conveyancing process, some buyers may end up paying additional tax through no fault of their own. A short extension before the end of March would be a fair measure to prevent unnecessary financial strain,"Babcock added. Rightmove continues to advocate for modernizing and digitizing the property transaction process, noting that the average time to complete a purchase remains around five months, a challenge for buyers trying to meet the deadline.

Market Outlook and Buyer Activity

Despite concerns over stamp duty changes, overall market activity remains strong. More than 550,000 properties are currently in the completion process, 25% more than this time last year. London, in particular, is experiencing a surge, with 28% more first-time buyers in the capital progressing through transactions compared to last year. Buyer demand also remains high, with 8% more inquiries to agents and 15% more sales agreed compared to 2024. Rightmove further reports a record number of mortgage applications in principle in January 2025, a 49% increase from the previous year, suggesting a strong mortgage market leading into the spring. While broader economic factors such as inflation and interest rates could influence market sentiment, Rightmove expects activity to remain steady beyond the stamp duty deadline. "The additional stamp duty charges present a significant financial challenge for buyers in higher-priced areas like London.

However, despite these hurdles, agents report a continued healthy level of market activity, with no major downturn expected post-April," Babcock concluded.