Introduction to the Rightmove House Price Index

As the UK property market continues to evolve, the latest Rightmove House Price Index reveals a decade-high choice of properties for spring buyers, despite the looming stamp duty deadline. This surge in available homes offers potential buyers a wider range of options, even as some face the challenge of completing purchases before the March 31st deadline.

Key Findings of the Rightmove House Price Index

The Rightmove House Price Index highlights several key trends in the UK property market:

• Increased Property Choice: The number of available homes for sale is at a 10-year high, providing buyers with more options than ever before. This increased supply is partly due to a record number of new sellers entering the market early in the year[2][3].
• Price Growth: The average price of properties coming to market has seen a modest increase, with a 1.1% rise in March to £371,870, reflecting a cautious approach by sellers ahead of the stamp duty changes[1][3].
• Stamp Duty Deadline Impact: The upcoming stamp duty deadline is causing a conveyancing log-jam, with over 550,000 homes sold but awaiting legal completion, 25% more than last year. This situation particularly affects first-time buyers in the £500,001 to £625,000 bracket, who risk an additional £11,250 if they miss the deadline[3][5].

Market Activity and Trends

Despite the challenges posed by the stamp duty deadline, market activity remains robust:

• Buyer Demand: Buyer demand is 8% ahead of last year, with sales agreed numbers up by 15%, indicating a strong appetite for property purchases[3][5].
• Mortgage Applications: January saw a record number of Mortgage in Principle applications on Rightmove, up 49% from January 2024, signaling intent among potential buyers[3][5].
• Mortgage Rates: While mortgage rates remain high, they are trending downward, which could improve affordability for buyers in the coming months[4][5].

Industry Insights and Reactions

Industry experts offer diverse perspectives on the current market conditions:

• Tom Bill, Knight Frank: "Buyers have started the year cautiously, despite the prospect of a stamp duty increase. We expect low single-digit house price growth this year, influenced by inflation and interest rates"[1].
• Sarah Bush, Cheffins: "Sellers are eager to move forward, and while stamp duty changes may impact some, many buyers seem relaxed about the deadline. Realistic pricing is crucial for successful sales"[1].
• Nathan Emerson, Propertymark: "The market shows resilience, but future growth depends on inflation and interest rate movements. We hope for sustained momentum as we approach summer"[1].

Conclusion

The Rightmove House Price Index paints a picture of a dynamic UK property market, where spring buyers can capitalize on a decade-high choice of properties. While the stamp duty deadline poses challenges, the underlying market activity remains positive, with potential for growth as economic conditions stabilize.