The market is going through a bumper period of house sales, as there are currently 26% more homes in the buying process than a year ago, Zoopla research shows.
There are 306,000 homes being bought and sold at a value of £133 billion, which Zoopla attributed to rising incomes combined with lower mortgage rates.
However another factor seems to be falling confidence in buy-to-let, resulting in landlords dumping housing stock.
Chris McLaughlin, director at Bristol-based Ocean Estate Agents, said: “Buy-to-let activity has notably declined as smaller or accidental landlords exit the market, influenced by less favourable financial conditions and increasing regulation.
“Consequently, much of the new housing stock now comprises former rental properties. Additionally, transaction completions have risen in the last couple of months, particularly within the investment property sector, as sellers seek to conclude deals ahead of potential changes anticipated in the upcoming budget.”
The market is on track for a modest 2% price increase in 2024, as well as 1.1 million of sales.
Meanwhile house prices remain on track to be 2% higher over 2024.
In more affordable areas, house prices are rising at an above-average rate in the North-East (2%), Yorkshire & Humberside (2%), North-West (2.3%), Scotland (2.4%) and Northern Ireland (5.6%).
Conversely, they are down slightly in Eastern England (-0.3%) and the South-East (-0.1).
Today, first-time buyers do not have to pay any stamp duty on properties that cost up to £425,000 and pay partial stamp duty on homes up to £625,000 (England and Northern Ireland only). As it stands 80% of first-time buyers pay no stamp duty, with 14% only paying partial duty.
This support for first-time buyers is set to end in April 2025, unless reversed in the Budget next week. A return to previous thresholds would result in an additional 20% being liable to pay stamp duty and a further 14% paying a partial amount.
Richard Donnell, executive director at Zoopla, said: “First-time buyer numbers have recovered as mortgage rates have fallen but a sizeable deposit is still required to buy.
“Possible changes to stamp duty relief will only create further barriers to ownership for this group who already face significant affordability constraints.
“The housing market doesn’t need short term policy tweaks from the Budget. The health of the housing market and people’s ability to afford housing is linked to the health of the economy.
“It’s vital the Budget is focused on economic growth and expansion in jobs and rising incomes. The primary focus should be on providing the financial support and investment needed to help build the homes the nation needs for buyers and renters.”
