Asking Price Growth Eases as Stamp Duty Changes Shape Buyer Behaviour
Following our recent article in last month’s Market Insight, Making Sense of ‘Price‑Surge’ Headlines, where we tried to make sense of the headline grabbing price surge articles of some of the mainstream media. This month’s headlines are a little more cautious.
Despite Rightmove’s latest House Price Index confirming another national record for seller asking prices, working on the ground in Stoke Newington, the reality is much more nuanced, especially as the effects of stamp duty changes continue to ripple through the local market.
Whilst this is the fifth year running the month of May has brought new highs for average asking prices. Traditionally, spring and early summer see the Stoke Newington market at its busiest, with its pretty period homes on leafy streets, newly landscaped gardens, and a renewed appetite from buyers eager to move before the new school year. Yet mercifully for buyers, the rate of asking price growth is slowing. This year’s seasonal increase is the smallest for May since 2016, which is particularly notable in such a vibrant part of North London.
The Impact of Stamp Duty and Record-High Supply
Rightmove’s data highlights a 0.6% rise (+£2,335) in new seller asking prices this month. While this represents a new high, the context is everything: the number of homes for sale in Stoke Newington and surrounding boroughs is now at its highest in ten years. This unprecedented supply is matched by a 14% year-on-year increase in new listings. As a result, buyers now have more choice, and sellers are under pressure to set realistic price expectations.
The subdued nature of the late spring market is, in large part, a response to recent stamp duty threshold changes. Many homeowners chose to list their properties early in the year, creating a surge in available stock just as buyer demand was beginning to cool. This has led to greater competition among sellers, and it is now more important than ever for those thinking of selling in Stoke Newington to price accurately and present homes to the highest standard.
Buyer Demand: Mixed Signals but Reasons for Optimism
After a brisk March, new buyer demand dipped in April, sitting 4% below the same month last year. This softening is to be expected given the flood of new listings and the lingering effects of the stamp duty increase. However, demand over the year to date remains 3% ahead of 2024, and there are signs that the market is regaining momentum as we move into late May.
Encouragingly, the number of sales agreed in the last month is 5% higher than at the same point last year. In Stoke Newington, the buyers are still out there, but they are more discerning and have greater negotiating power. Realistically priced homes, especially those with outdoor space or period features, continue to attract strong interest.
Interest Rates and Affordability: Looking Ahead
With the Bank of England’s recent rate cut, there’s potential for a boost in affordability and buyer confidence as the year progresses. According to Rightmove, the lowest available two-year fixed mortgage rate has dropped to 3.72%, down from 4.75% last year. This could reignite activity in the local market as summer approaches.
At Julian Reid, as leading estate agents in Stoke Newington, we recommend that sellers focus on strategic pricing and excellent presentation. Buyers should take advantage of increased choice and improving mortgage rates. For tailored, street-by-street guidance, speak to our expert team. We’re here to help you succeed in the changing Stoke Newington market.
A selection of Recently Listed Homes From Julian Reid
Here are just a few of our most recently listed properties for sale from our Stoke Newington office –
House for Sale in London – Guide Price £1,650,000
Apartment for Sale in London – Guide Price £750,000
Flat for Sale in London – Guide Price £675,000
Apartment for Sale in London – Guide Price £450,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
See our ‘Recently Sold Properties’.
Considering a Move?
Please feel free to call me at our Stoke Newington Office if you are considering selling your home in the N16 or surrounding areas of North London, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
You can also use our Instant Online Valuation tool.
Good luck with your house hunting.
Julian Reid
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