The property market is experiencing a surge in activity, with 26% more homes currently in the buying process compared to this time last year. That’s according to the latest research from property website Zoopla.

Zoopla’s data reveals that 306,000 homes, worth a combined total of £133 billion, are currently being bought and sold. This surge is being fuelled by a combination of factors, including rising incomes and more attractive mortgage rates.

Landlords bailing out! Another key factor driving the increased activity is a decline in the buy-to-let market. Landlords, facing tougher financial conditions and increasing regulation, are choosing to offload their properties. This is great news for buyers, as it means more properties are becoming available.

Chris McLaughlin, a director at Ocean Estate Agents in Bristol, confirms this trend. He notes that “buy-to-let activity has notably declined” as landlords, particularly smaller or “accidental” landlords, are exiting the market. He highlights that many of the properties currently being sold were previously rentals.

Prices set to rise (but not by much!) Looking ahead, Zoopla predicts a modest 2% increase in house prices throughout 2024, with around 1.1 million sales expected. Interestingly, prices are rising at a faster rate in more affordable areas, such as the North East, Yorkshire & Humberside, and the North West, all experiencing a 2% rise. Scotland boasts a slightly higher increase at 2.4%, while Northern Ireland takes the lead with a significant 5.6% jump.

However, prices in Eastern England and the South East are showing slight declines of -0.3% and -0.1% respectively.

First-time buyers – act fast! Currently, first-time buyers benefit from generous stamp duty exemptions, with no stamp duty payable on properties up to £425,000 and reduced rates on homes up to £625,000 (in England and Northern Ireland only). Zoopla reports that 80% of first-time buyers currently pay zero stamp duty, while 14% pay only a portion.

However, this support is due to end in April 2025. If the government doesn’t extend the scheme in the upcoming budget, an extra 20% of first-time buyers will face paying the full stamp duty amount, and a further 14% will see their bills increase.

Richard Donnell, an executive director at Zoopla, acknowledges the challenges faced by first-time buyers. While he recognizes that falling mortgage rates have boosted their numbers, he stresses that “a sizeable deposit is still required.” He warns that any changes to stamp duty relief will only make it even tougher for first-time buyers, who are already grappling with affordability constraints.

Donnell believes that rather than “short-term policy tweaks,” the government should prioritise “economic growth and expansion in jobs and rising incomes” to ensure the long-term health of the housing market. He emphasises the need for financial support and investment to build more homes, addressing the needs of both buyers and renters.