The clocks have changed, there’s sunshine in our skies, and the evenings are no longer the black of night from 4pm. Spring is here!
What does that mean for the property market?
Well traditionally, Spring is usually a good time to buy and sell property. But with the economic turbulence worldwide, and a recent Spring statement from Rachael Reeves, does that same mantra hold true in 2025?
Let’s have a look.
Spring is still ‘selling season’
More properties come onto the market in Spring, and it’s a good time in the year to buy. You can usually complete a sale within 6 weeks, so long as the chain holds together. That means that you’ll be able to move in the warmer summer months, and if you have children, they’ll be able to settle in before school begins again.
If you’re planning to sell, this is the time to do a proper spring clean, declutter, and get your house looking as attractive as possible for potential buyers.
Any relief for first-time buyers?
Unfortunately, there was nothing in Rachael Reeve’s Spring statement to help first-time buyers. The Stamp Duty allowances that raised the threshold for relief to properties over £425,000 has now come to an end. As of 1 April 2025, first-time buyers will need to pay Stamp Duty Land Tax on any properties worth over £300,000.
While Labour has grand plans to build £1.5 million homes this year, progress on those builds may slow with the economic uncertainty around the world. Building materials could become more expensive.
So if you’re a first-time buyer, there’s not necessarily any silver bullet on the horizon. If you want to buy this Spring, just go for it. You may have to pay a little more in Stamp Duty than you did earlier in the year, which may need to be factored in to your budget. Otherwise, the guidance is just to proceed as normal.
Possible changes to Mortgage Deals
In the aftermath of Donald Trump’s trade tariffs, we may see a fall in interest rates. That means that there could be more competitive mortgage deals on the horizon. The Bank of England is due to meet on 8 May 2025, and they’ll decide at that meeting whether or not they cut interest rates. If they do, there could be a corresponding fall in interest rates for mortgages.
However, that’s just a bit of guess work. If you’ve been listening to the news recently, the general sense is the “nobody really knows” what will happen in the wake of these tariffs. You may hear other forecasters who predict that the interest rate will rise.
As a general guide, if you can lock in a mortgage rate for around 4%, that’s a pretty good rate at the moment. You might choose a fixed rate for a shorter period of time (say 2 years) to see if interest rates will fall again in the future.
If you want to move, now is as good a time as any
Putting the economic factors aside, if you know you want to move house this year, now is a good time to get started. More houses are becoming available, and there are more buyers looking to buy your home. Not to mention, it’s a more enjoyable experience to move house in the lighter, warmer months.
When you’re ready to start the conveyancing process, we’re just at the end of the phone or an email and we’ll be happy to help you.