Spring market update

There are high hopes for spring 2024 in the world of property. As mortgages continue to creep downwards from last year’s off-puttingly high rates, there’s a sense that everybody is waiting for their moment to act. What does Spring hold for the property market?

All the signs are in place to suggest that spring will bring a surge in activity. A record number of homes came to market on Boxing Day, revealing that there are lots of people wanting to sell and move – many of them probably having held off for some time in the hope of improved conditions. And this increased momentum has continued since then, with an increase in 7% of homes coming to market as compared to the same time last year, and a 16% increase in completed transactions over the same period, according to Rightmove data.

Moreover, we are expecting the government’s spring budget announcements on 6th March, which might include policy changes that relate to house buyers. It’s rumoured that there could be changes to Stamp Duty thresholds, or a reduction in their rates, or even another Stamp Duty holiday. The government has been under pressure from various groups to reform Stamp Duty, which is arguably hindering activity at the lower end of the property market by adding to first time buyer unaffordability.

Landlords, too, claim that investors are put off by punitive rates of Stamp Duty and that the market would benefit from some relaxation in this department. Other reports suggest that the government is considering creating a new scheme to offer 99% mortgages to young people, a move that goes further than the old Help to Buy Scheme that still required a 5% mortgage and should help with first time buyer affordability.

All these ideas have their detractors, many of whom would argue that they all ultimately result in pushing property prices up, bringing them even further out of reach for those they are intending to help. But even without intervention, property values are currently regaining momentum, and transaction numbers are increasing, suggesting that confidence is strong. Spring 2024 is on track to be a busy time for buyers and sellers.