End of Year Surge Inbound - Property News November 2024

October Property Market Update: Surge in Sales and Key Changes to Watch

As we look back on October, it’s clear that the property market is moving at an intense pace. Our region has seen consistent buyer and seller engagement all year, and October was no exception. While property prices in 2024 haven’t seen massive jumps—Rightmove reports a 2.6% rise, with our data showing slightly higher growth—the real headline is the increase in transaction volume.

Sales Activity Skyrockets: Year-Over-Year Trends

Data from TwentyEA shows a substantial boost in activity: October sales were 39% higher than the same time last year, and year-to-date figures are up over 20%. This uptick highlights strong demand across the property market, even amid shifting economic conditions. With more people actively buying and selling, October adds another strong month to what has already been an unusually lively market year.

Major Policy Update: Labour Government’s Stamp Duty Adjustments

Last week, the new Labour government announced its first budget, introducing new stamp duty policies that will affect many buyers, especially those investing in second homes or buy-to-let properties. For these buyers, the additional stamp duty surcharge will increase from 3% to 5%. This change could impact the buy-to-let market, yet most landlords seem willing to absorb the cost, focusing on long-term gains rather than immediate costs.

Lower Stamp Duty Threshold in April: How Buyers Can Prepare

Another major change in the budget is the lowering of the stamp duty threshold, which will decrease from £250,000 to £125,000 as of April. For many buyers, this could mean an extra £2,500 in costs, likely sparking a temporary rush to close deals before March ends. To beat the deadline, sellers should consider listing now and engaging a reliable estate agent and solicitor right away, as sales are currently taking around 4-5 months to finalise.

Winter Rush Expected as Buyers Aim to Save on Stamp Duty

Given the upcoming changes, November and December may see heightened market activity, with buyers eager to complete transactions before the new stamp duty rate takes effect. However, once the initial rush passes, the market is likely to adapt to the updated thresholds. With the Bank of England recently lowering interest rates to 4.75%, the general trend toward lower rates should help support property affordability, offering a more optimistic outlook for the months ahead.

What Lies Ahead? Market Prospects in a Changing Environment

We’ll be watching closely to see how the market responds to these developments in the coming months. The combination of interest rate cuts and sustained demand signals a promising outlook, even with the adjusted stamp duty policies. To stay informed on what’s happening in real estate, keep following these updates. And if you’re considering buying, selling, or renting, our team is available 8-8, seven days a week, ready to guide you through your next move. Thanks for reading, and stay tuned for more insights!