Buyers Rush To Complete | Property News November 2024
Jake, our Sales Director, looks at the recent figures from across the market from TwentyEA, and there are plenty of reasons to be optimistic!
October Market Overview: A Busy Month in Property
October continued the strong pace we’ve seen all year in the property market, keeping up with a buoyant 2024. While we haven’t seen significant price growth—Rightmove’s latest index shows a 2.6% increase in our region, with our own data suggesting slightly higher growth—the real story is the big jump in buyer and seller activity. This trend held steady through October, adding to an already active year.
Market Data Highlights: Activity on the Rise
According to data from TwentyEA, overall sales in October surged 39% from the same time last year, with year-to-date sales up over 20%. It’s clear there’s been a significant uplift in market activity. But with recent changes, what could this mean for the months ahead?
New Government Budget and Stamp Duty Changes
Last week, the new Labour government delivered its first budget, and it came with some important changes for buyers. For those purchasing additional properties—whether buy-to-let investments, second homes, or holiday homes—the additional stamp duty surcharge will rise from 3% to 5%. While this initially raised concerns about potential impacts on investor purchases, most landlords seem to be focusing on the long-term and absorbing the extra cost.
Lower Stamp Duty Threshold: What This Means for Buyers
The biggest change for most buyers will be the reduction in the stamp duty threshold from £250,000 to £125,000, starting in April next year. This adjustment could add up to £2,500 to a buyer’s stamp duty costs. As a result, we expect a short-term rush as buyers try to complete purchases before the end of March. If this change affects you, now is the time to act! With transactions currently taking 4-5 months on average, getting your property on the market and hiring a good solicitor will be key to meeting the deadline.
A Potentially Busy Winter for Estate Agents
We expect November and December to be busier than usual as some buyers move quickly to save on stamp duty costs. Beyond this rush, however, the market should adjust to the new rates, especially given the recent drop in interest rates to 4.75%. This downward trend in rates could support a more positive market outlook in the months ahead.
Looking Forward: How Will the Market Respond?
While we can’t predict the future with certainty, the outlook seems promising with recent rate cuts. Stay tuned to these updates for the latest on the property market!
