Rising Stamp Duty is expected to drive demand in the housing market, according to a report by Propertymark.
The September 2024 Housing Insight Report indicated changes in the market following the announcement of Stamp Duty rises in England and Northern Ireland, effective April 2025.
The firm reported that this was likely to drive more buyers to the market, as many look to complete their purchases to save on costs.
However, the private rented sector (PRS) is seeing tightened budgets.
The report was based on responses from around 100 sales and 100 letting agents across the UK.
House prices rose by £2,076 to an average of £290,000 in September 2024, approximately eight-times the average annual gross earnings.Â
Tenant demand remained steady, with the average number of new prospective tenants registered per branch staying roughly the same at 113 in September, up from 112 in August 2024.
Overall stock levels increased, indicating a rise in new property instructions per branch.
The sales figures indicated that an average of 96 new prospective buyers registered per member branch, with 13 homes placed for sale per branch.
However, there was a slight dip in the average number of viewings per available property, which fell to 2.2 in September 2024.
Nathan Emerson, CEO of Propertymark, said: “With interest rates slightly easing and improved mortgage deals coming to the market, we are seeing more people looking to make their next home move as their financial stability and reassurance improves.
“The announcement of Stamp Duty rises in England and Northern Ireland from April 2025 will likely push more people to the market in hopes of completing to, in some cases, save thousands on their next home purchase.
“With more appetite from buyers comes more homes coming onto the market, so we expect to see activity accelerate over the coming months moving into 2025.
Emerson added: “Tightened purse strings are being seen across the whole of the private rented sector.
“The recurring picture of demand far outstripping supply levels is not drastically worsening; however, levels are not improving and will continue to play a huge role in the continuous unaffordable landscape of the sector.
“We really need to see the UK Government provide a clear and supported pathway for the private rented sector to flourish to support current and future landlords.
