At the end of this month, time itself changes as clocks go forward on the 30th of March. However, it's not just the clocks; times are changing in the UK housing market as well. Right now, the market is extremely busy with buyers eager to complete transactions ahead of the upcoming stamp duty increase.
Combine this with the end of the financial year and the traditional boost in spring sales, and it’s understandable if you're feeling a little overwhelmed.
Size matters in the 2025 housing market
While many factors influence house prices, the fundamental laws of supply and demand always play a significant role. Currently, the demand for homes offering more space appears to be a major driver in the market. Various sources indicate a noticeable preference for larger homes.
Of course, people have always desired more space, but external factors can sometimes encourage downsizing or opting for smaller properties. Right now, larger homes are clearly back in demand. According to Halifax, detached homes have increased in value by more than £100,000 over the past five years.
Amanda Bryden, Head of Halifax Mortgages, comments: “Now, as interest rates have started to ease, homes offering more space are once again fuelling demand. And that's not just a short-term trend; over the last decade, bigger properties have consistently outperformed smaller homes in terms of price growth."
Strong Demand for Detached Homes
Information from property analysts TwentyEA highlights a 14% rise in demand for detached homes since the beginning of 2025. They also suggest supply has risen of late, with more than 286,000 new properties listed in January and February—the highest figure in six years and 7.3% higher than during the same period in 2024.
Katy Billany, Executive Director at TwentyEA, states: “The strong start to the year is sustaining momentum, and with expectations of further rate cuts, consumer confidence remains high. The approaching stamp duty changes have clearly motivated many buyers eager to finalise their purchases. Once these adjustments take effect, we might see a slight dip in transaction levels. Although new instruction prices have remained almost static over the past year, they have still risen by 26% since 2019. As the spring selling season begins, we expect prices to remain stable.”
Uncertainty is a Constant Factor in Moving Home
As we approach the end of March, the housing market is buzzing with buyers looking to conclude deals before the stamp duty increase. This rush might lead some people to wonder if property deals will slow down in April.
There is still some hope for an extension, although Colleen Babcock, property expert at Rightmove, acknowledges that the chance of this is increasingly slim. However, she points out that the upcoming Spring Statement scheduled for the 26th of March offers an "opportune moment to announce a short extension to support movers." Should there be any changes, we’ll be sure to keep you fully informed.
Rightmove also highlights that the market currently has the highest level of property choices available at this time of year since 2015, indicating strong seller interest. While stamp duty changes will inevitably affect some transactions, it's hoped that most will still go through.
Nevertheless, uncertainty remains a factor, especially concerning planning approvals in the UK.
Glenigan, a leading construction industry insight provider, reports a 32% year-on-year decline in project-start values. Although more contracts are being agreed, construction isn't progressing as swiftly as anticipated.
Given that supply plays a crucial role in house prices and meeting high demand, delays in projects are concerning for the long-term health of the housing market.
Allan Wilen, Economics Director at Glenigan, comments: “The significant drop in project starts reflects ongoing challenges within the industry. While the increase in major contract awards is promising, real sustained growth depends on faster approvals. The proposed Planning and Infrastructure Bill has great potential, but its effectiveness hinges on how quickly and efficiently it's implemented. A key challenge remains the uncertainty around local authorities' ability to deliver these reforms promptly and unlock stalled projects.”
Spring is traditionally filled with optimism, and it's often a bustling period for the UK housing market. Once the stamp duty changes are in place and initial uncertainties subside, clarity will return, encouraging more people to make their move.
If you’re considering moving soon, now is a great time to speak to your local estate agent to stay informed and ahead of the curve.
We make sure you make an informed move
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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