The average property price rose by 1.1% this month to £371,870, aligning with the long-term March increase, according to the latest Rightmove House Price Index (HPI).
This reflected sensible pricing from sellers, despite increased competition with the highest number of sellers in a decade.
New buyers this past spring found the largest choice of properties since 2015.
An estimated 575,000 homes were in the legal completion process, with a prediction of 1.15 million transactions for 2025.
Rightmove identified around 74,000 moves, including 25,000 first-time buyers, that were set to miss the Stamp Duty deadline, resulting in an extra £142m in tax if completed in April.
Any hope of an extension seemed unlikely, but the upcoming spring statement could have changed this.
Sales agreed were 9% higher than at the same time in 2024, and new seller numbers were up by 8%.
However, the average 5-year fixed mortgage rate remained high at 4.74%, dampening some optimism.
Rightmove welcomed regulatory proposals toward easier responsible lending.
Colleen Babcock, property expert at Rightmove, said: “Historic averages show that this March is likely to be one of the strongest months of the year for sellers to spring into action.
“However, sellers can’t just rely on these historic averages for success, as this year they are facing a decade-high level of competition.
“Those who are successfully finding buyers right now are working hard with their agents to price competitively and present their home in the best possible light.”
Babcock added: “The big milestone ahead in England is the stamp duty deadline, and with a massive log-jam of 575,000 moves going through the legal completion process, many cost-conscious buyers will be doing all they can to get their move over the line and avoid unnecessary extra tax.
“Whilst agents tell us that they have been working with both sellers and buyers to factor in the additional charges, many movers are understandably hoping to reduce their tax bill and keep their savings for themselves.”
She said: “The pipeline of sales going through the completion process, as well as new sales being agreed, are signs of the strength of the important Spring housing market.
“It’s encouraging to see new activity continue to track above last year’s level.
“One of the clouds hanging over the market is persistently high mortgage rates.
“While there’s now more of an understanding among movers that rates aren’t heading back to previously ultra-low levels, many will have been hoping that they would drop more quickly.”
Matt Smith, mortgage expert at Rightmove, said: “We’re still seeing lenders price competitively where they can to secure mortgage business at this typically busy time of year.
“However, the economic turbulence happening globally is impacting mortgage rates, and we’re seeing some small rate fluctuations on a week-by-week basis.
“Most affected are rates for those with the smallest deposits, which is a double whammy for first-time buyers and those who need to borrow more.”
Smith added: “We’ve got the next interest rate decision coming up from the Bank of England, and the current expectation is that we’ll see a hold, followed by a cut in May.
“However, we’ve already seen this year how quickly things can change, so a lot will depend on other economic news we have between the two Bank of England meetings.”
REACTION:
Sarah Bush, head of residential sales and lettings at Cheffins:
“The year has gotten off to a good start, with a marked increase in the number of homes coming to the market in comparison to last year.
“Despite the wider economic outlook appearing to hold some uncertainty, the message we have received from sellers is that they are tired of sitting on the fence and really want to get on with moving this year.
“We may well see an impact on the entry level of the market as the nil rate threshold drops, however, many buyers seem to be fairly relaxed about the imminent stamp duty changes from the 1st April.
“Stamp Duty at all levels has become a cost to be swallowed and we don’t forecast this to have a major impact on activity in the market.
“Realistic pricing is key when it comes to the current market, and particularly in countryside locations, price sensitivity is still prevalent.
“The most testing part of the market is the upper end, where realistic pricing is particularly important.
“This is where sellers need to be mindful of not overpricing if they are looking for a successful sale.”
Chris Rosindale, chief operating officer at Connells Group:
“The market is performing well, and the number of property exchanges we’re seeing is ahead of last year.
“Despite the upcoming changes to Stamp Duty, we haven’t seen any slowdown in buyers’ appetites to purchase a home, even now knowing that they won’t meet the deadline of 31st March.
“The beginning of this year has seen overall growth in the sales market, with more sellers bringing their homes to market.
“Some stability in interest rates and modest house price growth have certainly helped to increase confidence from both buyers and sellers, and overall attitudes towards moving home are positive.
“Pricing is still key and setting realistic asking prices is vital to achieving the best sale.”
Nathan Emerson, CEO of Propertymark:
“It is positive to see the housing market demonstrating ongoing resilience, especially as we continue to see wider economic uncertainty.
“As we approach the summer months, we hope to see a sustained momentum in overall growth; however, a lot will likely depend on if we see inflation fluctuate over the coming months and to the point at which the Bank of England may choose to use invasive action regarding base rates to keep inflation in check.
“With the Spring Statement fast approaching, Propertymark looks forward to hearing how governments throughout the UK intend to make housing more affordable.”
