0:01 AM, 16th December 2024, About 4 hours ago
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The average price of properties coming onto the market has seen its usual seasonal festive drop, but Boxing Day could be a busy day for sellers.
According to Rightmove’s House Price Index, new seller asking prices are expected to drop by a seasonal 1.7% (-£6,395) this month to £360,197, in line with the usual December fall.
Despite the festive lull, market activity remains strong, up 22% compared to this time last year, with new buyer demand rising by 13%.
The property portal reveals that some movers are now waiting for the traditional Boxing Day bounce on Rightmove.
Last year, a record number of new sellers listed properties on Boxing Day, providing fresh options for buyers, while buyer demand surged by 273% between the Christmas Day lull and Boxing Day.
Tim Bannister, Rightmove’s director of property science, says many buyers are already preparing for the new year and Boxing Day could see a spike in interest.
He said: “New sellers in December have to work particularly hard to capture the attention of Xmas-party and festivity-distracted buyers, and the 1.7% average monthly fall is a fitting gift for those who are still buying homes rather than presents.
“Despite this monthly drop, prices have risen by 1.4% compared with this time in 2023, broadly in line with our prediction of a 1% rise in prices this year.
“We are now looking ahead to the traditional Rightmove Boxing Day bounce in home-mover activity, which has increasingly become a key date in the housing market calendar.”
He adds: “Each year, our real-time data can pinpoint the exact moment that the turkey is finished, family games run out of steam, mobile devices are picked up, and prospective movers flood onto Rightmove and get their 2025 move started.
“If this year is anything like recent years, those early birds who get their search started the day after the festivities are over are likely to be rewarded with plenty of fresh property choice to consider.”
However, despite the positive aspects of the 2024 market, the looming stamp duty deadline in England is a potential dampener for some in 2025.
The Budget confirmed that, from April next year, stamp duty thresholds in England will be lowered. For first-time buyers, the exemption threshold will drop from £425,000 to £300,000, while for standard residential properties, it will fall from £250,000 to £125,000.
According to Rightmove’s House Price Index, sellers of smaller properties in higher-priced areas are rushing to trade up or sell before the deadline to avoid higher stamp duty charges.
In the past four weeks, the number of sellers listing typical first-time buyer homes with two bedrooms or fewer in London has risen by 20%, the highest increase of any regional market sector.
In second place is the South East, up by 16%, which is also the second most expensive region.
Meanwhile, prices are holding up most strongly for first-time buyer properties in more affordable areas, which are likely to be less affected by the stamp duty changes, as most first-time buyer homes are well below the £300,000 tax threshold.
Prices for typical first-time buyer homes in the North East have risen by 1.0% this month, in sharp contrast to this month’s national 1.7% fall across all property types.
