The UK property market is experiencing a surge in average home prices, driven by increased buyer competition and an influx of new sellers.
According to the latest Rightmove data, the average asking price for UK properties rose by 1.1% in March, reaching £371,870. This increase, amounting to an average price hike of £3,876, aligns with historical seasonal trends. However, what makes this year unique is the intense competition among sellers—the highest in over a decade.
Rising Prices Despite a Changing Tax Landscape
The current property market activity is being fuelled by two key factors: increasing buyer demand and an anticipated stamp duty increase set to take effect on 1st April.
Rightmove’s data reveals that the number of sales agreed in March was 9% higher than in the same period in 2024. This suggests that despite looming tax changes, buyers are still eager to secure properties, fearing additional costs if they delay their purchases.
At the same time, the number of new sellers entering the market rose by 8% compared to last year. This uptick indicates that homeowners are rushing to list properties before the tax changes potentially impact buyer affordability and overall demand.
Why Is Buyer Competition So Intense?
While the UK property market has long been competitive, several factors are amplifying this trend in 2025:
- Upcoming Stamp Duty Hike – Many buyers are racing to finalise transactions before 1st April, when stamp duty rates will increase for certain purchasers.
- Limited Housing Supply – While more sellers have entered the market, demand still outpaces supply, pushing prices higher.
- Seasonal Market Trends – Spring is traditionally a strong period for the housing market, with more listings and higher buyer interest.
- Mortgage Rate Stability – With interest rates holding steady, buyers feel more confident about securing long-term financing.
Property Market Resilience in 2025
Despite tax policy changes and ongoing economic uncertainties, the UK property market remains robust. The rise in both sales activity and new listings highlights continued confidence among buyers and sellers.
Experts believe that demand is unlikely to dip significantly even after the April tax hike. While some buyers may pause, others will continue purchasing, particularly those who view property as a long-term investment.
Rightmove’s report reinforces this perspective, stating that the housing market is showing remarkable resilience despite evolving financial pressures.
What’s Next for UK Property Buyers and Sellers?
With just weeks before the stamp duty increase, property transactions are expected to remain high in the short term.
- For buyers, acting quickly before higher taxes take effect could result in significant savings.
- For sellers, the market remains favourable, with strong demand helping to drive competitive pricing.
As the UK property market continues to evolve, both buyers and sellers will need to stay informed about policy changes and market trends to make the best decisions.
