Welcome to your monthly property update!

How could recent price rises help to offset the stamp duty increase?

The property market has a way of taking care of itself. The recent average, price increases of 1.7%* in January, perhaps driven by demand to beat the stamp duty rush, could help to mitigate some of the costs associated with stamp duty (SDLT). However, this will also largely depend on how well you can negotiate a good selling price and have a good strategy when making an offer.

Strong values could help with stamp duty rises  

For single-owned residential properties, stamp duty has various thresholds, meaning its rise by 2% from 0% on properties is from the portion priced between £125,001 and £250,000.** The increase in value of your property could be more than this amount, which is £2500. However, you pay stamp duty after the purchase of a property, so a lot depends on the finer details of negotiating your offer. If your home’s value is more than £250,000, those thresholds remain the same for a single property.

Understand the full stamp duty rates

It’s important to note that the existing thresholds for homes worth more than £250,000 remain unchanged for single-property purchases. At 5% on the portion from £250,001 to £925,000.** Beyond this, the next £575,000 (from £925,001 to £1.5 million) is taxed at 10%, and any amount above £1.5 million is taxed at 12%.**

First-time buyers

Until 31 March 2025, first-time buyers benefit from a stamp duty (SDLT) discount, paying no SDLT on properties up to £425,000 and 5% on the portion from £425,001 to £625,000.** However, if the property price exceeds £625,000, the relief does not apply, and standard rates are used. From 1 April 2025, the discount threshold will be reduced, with no SDLT on properties up to £300,000 and 5% on the portion from £300,001 to £500,000.** If the price exceeds £500,000, buyers must follow the standard stamp duty rules applicable to those purchasing a home for the second time or beyond.**

Maximise your home’s value

With demand high and prices rising, now is a great time to assess your property’s true worth. A professional valuation could reveal a larger-than-expected increase in your home’s value, putting you in a stronger position when selling and helping to counteract stamp duty costs. Making the most of your home’s value can often be about the little things as well as staging and presenting it professionally.

Market momentum is building

As we move further into the year, market confidence continues to grow. Lower mortgage rates, high demand, and rising home values are all contributing to a buoyant property landscape. Whether you're looking to upsize, downsize, or relocate, conditions remain favourable for making your next move.

The power of good negotiation

A well-negotiated offer can make all the difference when securing your next home, and having an experienced agent by your side can help you achieve the best outcome. A good agent will understand market conditions, assess the seller’s position, and guide you on making a strong yet strategic offer. Whether it’s negotiating on price, securing favourable terms, or ensuring you stand out in a competitive market, expert advice can put you in the best position to succeed.

Contact us today for a free valuation and expert advice

Rightmove*

GOV.UK**

Five good reasons for moving in February 2025

This February signals fresh beginnings and for home movers this presents an excellent opportunity to take action. Whether you're looking to sell your current property or find your dream home, market conditions this month offer several advantages. From strong buyer activity to better mortgage deals, here’s why moving now could work in your favour.

1. Buyer demand is growing

A wave of confidence is sweeping the property market, with more buyers actively searching for homes. The number of agreed sales has risen by 11% year-on-year,* showing that people are ready to commit to purchases. If you're selling, this means a higher chance of securing a motivated buyer quickly. For those looking to buy, the market is moving, so waiting too long could mean missing out on the right property.

2. More homes are entering the market

If you've struggled to find the right home in the past, things are looking up. The number of new properties coming to market has increased by 11% compared to this time last year.* This surge in listings gives buyers a wider choice, making it easier to find a property that fits their needs. For sellers, it’s a sign of growing confidence, listing your home now means tapping into a pool of serious buyers while competition is still manageable.

3. Mortgage deals are more attractive

After a period of uncertainty, lenders are offering better mortgage rates to encourage more movement in the market. Lower borrowing costs make buying more affordable, and for those looking to remortgage, it’s an opportunity to secure a better deal. Buyers who act now can benefit from these improved rates before any potential changes later in the year.

4. Energy-efficient homes are in demand

With energy prices still a key concern, buyers are paying close attention to Energy Performance Certificates (EPC ratings) and energy-saving features. Homes with modern insulation, solar panels, or efficient heating systems are attracting more interest and could sell for a premium. Sellers making small upgrades, such as installing smart thermostats or improving insulation, could increase their property's appeal to energy-conscious buyers.

5. Moving before the spring rush has its benefits

Spring is traditionally the busiest time of year for the property market, with a surge of buyers and sellers entering at the same time. While this increased activity brings more opportunities, it also means more competition. Starting your move in February allows buyers and sellers to get ahead of the rush, securing deals with less pressure. Those who move early may also find that transactions complete faster, avoiding potential delays later in the season.

Thinking of moving? Book a free valuation today and start your journey with expert guidance

Rightmove*

The 2025 mortgage checklist: What to prepare

With the property market gaining momentum in February 2025, and mortgage deals improving, many buyers are taking steps towards securing their dream home. A mortgage is a key part of the process, and being well-prepared can make all the difference when it comes to securing the best deal and moving quickly when you find the right property. Whether you are a first-time buyer or moving home, having everything in order before you apply can help make the process smoother. Here is what you need to prepare for your mortgage application this year.

Check your credit score

Lenders will assess your credit score to determine your reliability as a borrower. A strong credit score can improve your chances of being offered a competitive mortgage deal. Before applying, check your score through a reputable credit reference agency and ensure there are no errors on your report. Simple steps such as paying bills on time and avoiding unnecessary credit applications can help maintain a healthy credit profile.

Organise proof of income and employment

Lenders need to see that you have a steady income to cover mortgage repayments. If you are employed, you will usually need to provide recent payslips and a P60 form. If you are self-employed, you may need at least two years of tax returns and accounts, along with bank statements showing your earnings. Having these documents ready in advance can speed up the approval process.

Calculate your deposit and budget

Knowing how much you can afford to put down as a deposit is essential before applying for a mortgage. The higher your deposit, the more mortgage options may be available to you. In 2025, there are still government schemes such as the mortgage guarantee scheme, which supports buyers with a smaller deposit. It is also important to factor in additional costs such as stamp duty, legal fees, and moving expenses when planning your budget.

Prepare bank statements and outgoings

Lenders will review your spending habits to assess whether you can afford mortgage repayments. Be prepared to provide several months’ worth of bank statements showing your income and regular expenses. Reducing unnecessary spending in the months leading up to your application can help demonstrate financial responsibility and improve your chances of approval.

Get an agreement in principle

An agreement in principle is a statement from a lender confirming how much they are willing to lend based on an initial assessment. While not a formal mortgage offer, it gives you a clear idea of your budget and can make you a more attractive buyer when making an offer on a property. Many estate agents will ask for this as proof that you are in a strong position to proceed with a purchase.

Research mortgage options

There are various types of mortgages available, including fixed-rate and variable-rate options. It is worth researching what suits your financial situation and future plans. Speaking to a mortgage broker or advisor can help you understand the latest deals available in 2025 and find a mortgage that meets your needs. Keep an eye on lender requirements, as affordability checks and lending criteria can change over time.

Consider your future financial plans

Before committing to a mortgage, think about your long-term plans. If you expect changes in your income, job, or lifestyle, it is important to choose a mortgage that fits your future goals. Some buyers may prefer flexibility, while others might want the security of a fixed monthly repayment. Planning ahead can help you choose a mortgage that suits both your current and future circumstances.

Be ready to move quickly

With the property market seeing increased activity in early 2025, being prepared gives you an advantage when you find the right home. Having all the necessary documents in place, securing an agreement in principle, and understanding your budget can help ensure you are ready to act when the opportunity arises.

Book a valuation for expert guidance on the next steps in your home buying journey

How to navigate property chains as a buyer or seller in the UK

Navigating a property chain can be one of the most stressful aspects of buying or selling a home in the UK. A property chain occurs when multiple transactions are linked together because each buyer and seller is dependent on another sale completing. If one link in the chain breaks, it can cause delays or even collapse the entire process. Understanding how to manage a property chain effectively can help you minimise risks and complete your transaction smoothly.

Understanding property chains

A property chain consists of a series of homebuyers and sellers who are connected because their transactions depend on one another. A simple example is when a first-time buyer purchases a home from a seller who is moving to another property, and the seller’s purchase depends on another seller further up the chain. These chains can grow complex, involving multiple buyers and sellers, mortgage approvals, legal processes, and coordination between estate agents and solicitors.

Challenges of property chains

Delays: A delay in one transaction, such as a mortgage offer taking longer than expected or survey issues, can impact the entire chain.
Breakdowns: If one party withdraws from the sale or experiences financial issues, it can cause the whole chain to collapse.
Increased costs: Delays and complications can lead to additional costs, such as extended rental agreements or repeat mortgage application fees.

How buyers can manage property chains

Get your finances in order: Before making an offer, secure a mortgage in principle and have your deposit readily available. This ensures you can move quickly when necessary.
Choose a reliable solicitor: Working with an experienced conveyancer or solicitor can help prevent legal delays and ensure the process moves efficiently.
Maintain clear communication: Stay in regular contact with your estate agent, solicitor, and mortgage lender. Promptly respond to any requests for information or documentation.
Consider a chain-free property: If you want to avoid complications, consider purchasing a property that is chain-free, such as a new-build home or one where the seller has already vacated.
Be flexible with moving dates: The more flexible you can be with completion dates, the easier it is to accommodate others in the chain, reducing the likelihood of disruptions.

How sellers can navigate property chains

Prepare your home for sale: Ensure your property is market-ready with necessary repairs completed, accurate documentation available, and professional photographs taken for marketing.
Price your property realistically: An overpriced home may struggle to sell, leading to delays. Obtain a realistic valuation from a trusted estate agent to attract serious buyers.
Work with experienced professionals: A skilled estate agent and solicitor can help coordinate with other parties and keep the transaction moving smoothly.
Have a backup plan: If possible, consider having alternative housing arrangements in case of unexpected delays, such as staying with family or renting temporarily.
Encourage a short chain: Selling to a first-time buyer or someone who has already sold their property can reduce the length of the chain and the risk of complications.

What to do if the chain breaks

Even with careful planning, property chains can sometimes break. If this happens, consider the following options:

Identify the weak link: Work with your estate agent to determine where the issue has arisen and whether it can be resolved.

Negotiate a temporary solution: If a buyer has withdrawn, you may be able to find a new buyer quickly or offer incentives to keep the deal moving.

Re-market the property: If necessary, relisting your property promptly with an effective marketing strategy can attract new buyers and keep your move on track.

Final thoughts

Navigating a property chain can be challenging, but with preparation, patience, and the right professional support, you can reduce the risks and improve your chances of a successful sale or purchase. Keeping communication open, being proactive, and having contingency plans in place can make all the difference in ensuring a smooth property transaction.

Thinking of buying or selling? Book a free valuation today and get expert guidance