The UK housing market is experiencing an unexpected winter boom, with buyers and sellers racing to complete transactions ahead of April 2025’s changes to Stamp Duty thresholds. A recent Housing Insight Report from Propertymark reveals rising sales volumes across England and Northern Ireland, driven by the prospect of saving thousands of pounds before the new tax rules come into effect.
Sales market sees rare winter activity
October 2024 saw a 23% year-on-year increase in UK residential sales transactions, defying the usual seasonal slowdown. The number of viewings per property edged up to an average of 2.5, while branches listed an average of 13.5 homes for sale, a slight improvement over previous months. Stock levels also rose modestly, with 49 properties available per branch, reflecting a growing willingness among sellers to meet rising buyer demand.
For property investors, the stamp duty deadline is a critical factor. “We’re seeing unusual levels of activity for this time of year,” said Sarah Fisher, an agent based in Northern Ireland. “Buyers are motivated to act quickly, and sellers are matching that urgency. Everyone’s eyes are on that April 2025 deadline.”
Rental market faces supply challenges despite cooling demand
While the sales market heats up, the lettings sector is showing signs of strain. October 2024 saw a drop in new tenant registrations per branch, from 113 in September to 93 in October. However, supply remains insufficient to meet demand, with nine prospective tenants vying for every available property.
Despite this imbalance, the level of rental arrears dipped slightly in October, hinting at improved tenant stability. Experts warn, though, that the overall supply shortage will likely keep rents high. “Even with fewer applicants, the demand still vastly outweighs what’s available,” said James Clarke, a letting agent in Manchester.
What does this mean for landlords and property investors?
For landlords, the dual market trends present opportunities and challenges. The uptick in sales activity may provide an exit strategy for those looking to sell investment properties at favorable prices. Conversely, persistent supply shortages in the rental market underscore the potential for strong rental yields, albeit with the risk of regulatory shifts that could impact profitability.
With the April 2025 stamp duty changes looming, landlords and investors are left with key questions: Should they capitalise on the sales momentum or double down on rental portfolios? As the market navigates these unprecedented dynamics, only one certainty remains—2025 will bring significant changes to the UK property landscape.
The months ahead will reveal whether this winter surge is an anomaly or the beginning of a new housing trend. For now, the race is on, and landlords must decide how best to position themselves in a market that shows no signs of standing still.
