Latest news with #ZooplaHousePriceIndex
Yahoo
7 days ago
- Business
- Yahoo
UK sellers offer £16,000 discount on average to secure house sale
Homes are selling for an average of £16,000 below asking price as sellers try to secure a sale in a buyers' market. The UK housing market is experiencing its most active May since the pandemic boom of 2021, amid improved mortgage affordability and a surge in supply, according to Zoopla. However, while buyer interest has returned, sellers are being forced to temper their expectations. The average home is currently being sold for £16,000 below the asking price, a discount of around 3%. Changes in how mortgage affordability is assessed are fuelling buyers' return, with purchasers now able to borrow up to 20% more than they could earlier in the year. This has helped counter the effect of higher interest rates, which caused a fall in transactions through 2022 and 2023 when mortgage rates briefly hit 6%. Sarah Coles, a columnist at Yahoo Finance UK and head of personal finance at Hargreaves Lansdown, said: 'There are now plenty of [mortgage] deals priced at under 4%, which opens up affordability for so many more buyers.' Average house prices have risen 1.6% over the past 12 months to £268,250 — an increase of £4,330. Despite growing demand, price growth remains modest by historical standards, amid the lingering impact of inflation on household finances. Read more: Lenders push under 4% deals but mortgages set to rise amid inflation jump The most substantial gains are being seen in the North West of England, where employment growth and relative affordability is driving price rises. Blackburn leads with annual price growth of 5.8%, followed by Wigan (4.4%), Birkenhead (4.1%), and Liverpool (3%). Manchester posted a 2.5% increase. Martin Bennett, owner of Crown Estates and Letting Agents in Blackburn, said: 'Business is booming, with increased demand for properties both at the lower and top end of the market. This is reflected in house prices, with an entry-level property now averaging £75,000, up from around £50,000 two years ago. 'From my experience, properties that are priced correctly are going under offer within two weeks of being listed. It's not uncommon to have 10 or more viewings on the first day.' Scotland is also outperforming the national average, with prices up 2.9%, although Aberdeen remains an outlier with a 1.4% annual decline amid weaker economic conditions tied to the oil and gas sector. By contrast, southern regions are seeing an increase in supply and relatively subdued price growth. The number of homes for sale has risen 21% in the South West, 17% in London, and 15% in the South East. Price growth across these areas remains below 1%, with affordability concerns also limiting further gains. According to the latest Zoopla House Price Index, the number of sales agreed in May is at its highest level in four years, on the back of a 13% year-on-year increase in homes listed for sale. Read more: Odds of more Bank of England interest rate cuts fall as food inflation rises "More homes for sale means more buyers looking to move home,' said Richard Donnell, executive director at Zoopla. 'This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed. 'Sellers and buyers need to adopt different tactics based on where they live across the UK; however, all sellers need to keep their feet on the ground and be realistic on pricing expectations." Zoopla forecasts continued momentum in sales in the second half of 2025, with national home values expected to end the year around 2% higher than they began.
Yahoo
07-02-2025
- Business
- Yahoo
How to complete on a property before stamp duty deadline in March
In September 2022, the Conservative government introduced a temporary reduction in stamp duty land tax (SDLT). The current Labour government has not extended this, which means many property buyers, including those buying their first home, will have to pay thousands more in upfront costs from 1 April 2025. No wonder there's been a rush of activity in the UK property market. A recent survey of homebuyers, who had had offers accepted in the past three months, found that 51% were aiming to complete before the SDLT deadline, while January's Zoopla House Price Index showed new sales agreed were up 12% annually and buyer demand had increased by 13%. December's report found similarly positive sentiment with house prices rising 2% in the year to December 2024, compared to a 0.9% drop in 2023. With this in mind, we spoke to several experts for their advice on how to get your property purchase through as quickly as possible. With 31 March just over a couple of months away, you need to have really already agreed a price with your vendors. 'It used to take around 8 to 12 weeks (so two to three months) but not anymore. Rightmove is saying it's now closer to five months on average. That's nearly double what most people expect,' says Sarah Walker, owner of Walker Hall Estate Agents. Read more: 7 property planning trends of 2025 'If you're hoping to complete before the end of March to save on stamp duty, you need to get moving right now. There's no wiggle room for delays.' To ensure your property completes by the stamp duty deadline, it's worth being aware of the things that snare up and slow down the process. 'The most common causes of delays include protracted enquiries, complications with leasehold properties and/or management companies, and long property chains,' says Ed Percival, director and head of legal practice at Simply Conveyancing. 'Depending on the local authority and the freeholder, extracting local searches and a management pack can take significant time,' adds Emma Fildes, founder of buying agency Brick Weaver. If you're in a chain, there's also a chance of a broken chain causing delays. If one person's sale is delayed or falls through, that will delay or affect yours, even though their sale is completely independent from yours. As well as missing the stamp duty deadline, property delays can be stressful and costly, especially if you're renting while waiting to buy. It's worth knowing, therefore, which properties are prone to taking more time. As management companies are often the cause of delays, sales involving leasehold properties tend to take longer. 'Leaseholds are taking a lot longer than average since the new fire risk regulations have been introduced. Solicitors have a lot more hoops to jump, and management companies have a lot more information to process,' says Nick Karamanlis, personal broker at Moveli. If you're buying a property that has safety concerns, budget in extra time for the purchasing process. 'Properties impacted by the Building Safety Act (BSA) or those with cladding issues can take significant time to transact,' flags Percival. While probate properties are chain-free, make sure that probate has been granted if you're after a speedy completion. 'Sales involving a deceased estate require a Grant of Probate, which can take several weeks or months. If there are issues with wills or beneficiaries, the sale will be delayed,' says Jonathan Bone, head of mortgages at On the flip side, quick sales often involve cash purchases, where there's no mortgage required, and also new-build properties. 'If the property is ready to move into, purchases may be faster. However, delays can occur if the build isn't finished — some lender mortgage offers can be valid for 12 months, rather than the typical six, to cater to unfinished properties,' says Bone. Read more: How to find your 'forever home' in 2025 As chains can slow things down, not having a chain will speed it up. 'If you're buying a chain-free property, like a new-build or from someone who's already moved out, things tend to move faster because there are fewer people to rely on,' says Walker. While external factors, such as chain issues, are outside your control, there are things you can do to speed up the process. 'This includes having finances in place, securing a mortgage in principle, and having all necessary documentation ready such as Anti-Money Laundering (AML), Source of Funds (SOF), and Source of Wealth (SOW) documents,' says Percival. As well as organising your solicitor before you even put in an offer, make sure they are up to the job by getting a recommendation from a friend or family member who's used them to buy a property before. 'It really is about choosing a competent solicitor and making sure you are chasing for updates. This is not the part where you should be saving money,' says Karamanlis. If you're aiming to complete by a certain date, flag this to all parties as soon as your offer is accepted. While there's no legal obligation to complete by a certain date, if there's a target date, it will help everyone involved focus on getting to that deadline. Read more: The UK's top property hotspots in 2025 While you can't choose the estate agent you're buying from, keep in constant contact with them and your solicitor to ensure things move forward. 'A good solicitor and estate agent can be game changers here. They'll keep things on track, chase up slow responses, and handle the nitty-gritty so you don't have to stress as much. Don't be afraid to lean on them; they've done this a million times before,' says Walker. You also need to learn the art of compromise. 'You don't always get what you're after with a complex transaction like buying a house, having some wiggle room with the other party's requests can save you a huge amount of time,' says Bone. It might even be worth trying to build up a relationship with the vendor. That way, any issues that come up can be smoothed over relatively easily. While there are lots you can do to speed up the process, buying a property doesn't happen overnight and you need to be realistic about timings. 'Unless you are a cash buyer with no chain, the chances of completing within eight weeks are usually slim,' says Percival. Read more: Best UK mortgage deals of the week Average rent surges to £2,695 in London and £1,341 across UK UK's most and least affordable places for house prices revealedSign in to access your portfolio
