(March 17): More than half a million UK homebuyers are trying to tie up deals before a tax break slams shut at the start of April, according to property website Rightmove.

The 575,000 houses going through the legal completion process this month make up half of the 1.15 million home sales projected for the whole of 2025, Rightmove said. The number is up 21% compared with the same period a year ago, and the highest since 2022 when the market was still enjoying a post-Covid boom.

The logjam means almost 75,000 prospective buyers won’t be able to complete their deals before thresholds for stamp duty, a property tax, are lowered in April, Rightmove said. For some, failure to beat the deadline will add more than £11,000 (US$14,219 or RM63,257) in extra costs.

“Many cost-conscious buyers will be doing all they can to get their move over the line and avoid unnecessary extra tax,” Colleen Babcock, a property expert at Rightmove, said. She added that agents are already preparing buyers and sellers for the possibility of missing the deadline.

Buying a home remains difficult for many people due to stubbornly high borrowing rates and rising cost-of-living pressures. British families are also reluctant to make big spending decisions as they brace for lower pay rises and job losses when Labour’s increase in payroll taxes takes effect next month.

As the legal process of buying a home takes around five months in the UK, time is already running out to tie up purchases before the stamp duty thresholds become less generous. Estate agents warn the housing market could face a slowdown in demand after the deadline.

The number of home-sellers coming to market is at the highest in a decade, Rightmove said. Fierce competition is putting a lid on price growth as the balance has turned in favour of buyers. The average price of new UK homes coming up for sale rose 1.1% in March to £371,870, in line with the long-term trend.

Other reports suggest house prices are coming under pressure. Mortgage lender Halifax said home values fell in February, while property agents expect London house prices will see the sharpest dip in the UK in the next three months, according to a separate survey.

The average five-year mortgage rate stands at about 4.7%, little changed from last year but well-below the 6.1% peak recorded in July 2023, Rightmove said. Borrowing costs are set to remain high as Bank of England officials take a cautious approach to easing interest rates.

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