The sales market saw increased activity in January 2025, attributed to the upcoming changes in the Stamp Duty thresholds set for April, according to data from Propertymark.
Propertymark reported a 20% rise in sales volumes compared to January 2024, with an increase in prospective buyers to an average of 87 per branch.
The average house price stood at £268,000, over seven times the average individual’s annual gross earnings.
Despite this, sales continued to climb, showing a strong market response to the impending tax changes.
In residential lettings, tenant demand increased significantly, with registrations rising from 79 in December 2024 to 115 in January 2025.
However, demand still outpaced supply, with nine applicants for each available property on average.
Nathan Emerson, chief executive officer of Propertymark, said: “As widely expected, January 2025 saw an uplift in activity in the sales market due mainly to the Stamp Duty thresholds changing, requiring many homeowners completing from April onwards to pay more tax in England and Northern Ireland.
“It will be interesting to see how the dust settles within the sales market as we move closer to that deadline. Indeed, we are likely to witness this spike in activity tail off.
“However, people continue to adapt to market conditions, and for those who are factoring in this additional cost, their home move plans may remain unchanged.”
Emerson added: “For the private rental market, pressures remain, and the age-old story continues of demand levels increasing against a slowing backdrop of supply.
“We know that without government support for landlords to continue in the market or for future investors to enter, many may take their investment capability elsewhere or sell up altogether, worsening the ever-widening gap and ultimately pushing up rents even further.”
Phil Spencer, founder of Move iQ, said: “Many home buyers and sellers may be much more confident at approaching the housing market, as a combination of factors, like improved mortgage products, lower interest rates, and overall costs, potentially easing for many across the country.
“The next and most crucial hurdle is if inflation continues with a path back downwards. Lower inflation will hopefully help more aspiring and current homeowners’ affordability and allow them to move forward and commit to a potential move.
“For renters, it seems to be a relentless battle to find an ideal home and ensure it’s affordable.”
Spencer added: “With the long-awaited Renters’ Rights Bill to become law and a government consultation underway on plans to require landlords to improve energy efficiency in private rental properties by 2030, both initiatives will provide much-needed help and assistance to renters but may equally impose substantial new costs on landlords.
“How these additional pressures play out in the rental market will be a major part of the story in 2025.”
