Is it a good idea to sell your home now?

Usually, springtime brings a boost to the real estate market, but this time might be different

Is this the right time to sell a home?

Since buyers are more inclined to consider moving as spring approaches, February and March are frequently the best times to list a home for sale.

According to real estate website Rightmove, two of the highest months of the year are February and March, when nearly seven out of ten homes listed for sale actually close the deal.

A surge in activity can even give house prices a spring boost, as buyers want to move into their new residences by the summer.

However, with stamp duty changes endangering the housing market, this year might be different.

As of right now, stamp duty is only required for homes valued over £250,000, or £425,000 for first-time purchasers. Starting on April 1st, these thresholds will decrease to 125,000 and 300,000, respectively.

Although there has been a spike in activity in recent months due to the changes, experts caution that unless you are already far along in the conveyancing process, it is now too late to beat the deadline.

Robert Gardner, the chief economist at Nationwide, is predicting a "corresponding period of weakness in the following three to six months, as occurred in the wake of previous stamp duty changes" following a spike in transactions in the first three months of the year.

Because of this, people who list their property for sale this spring might discover that the market is moving more slowly than it has in past years, which could have an impact on prices.

"It will be interesting to see whether that momentum continues beyond April," stated Alice Haine, personal finance analyst at investment platform Bestinvest, "even though property prices are expected to remain resilient in the first quarter, partly due to base rate cuts and the stamp duty deadline."

Although there has been some improvement in affordability, it is still far below historical norms. Combine that with rising living expenses from April, when household bills start to rise again, job insecurity, and the possibility that wage growth will slow, and some sellers might be forced to lower their asking prices in order to close a deal," she continued.

Is the real estate market already slowing down?

There may already be indications of a slowdown in the real estate market. As the stamp duty window closed in February, Halifax's house price index fell by 0.1 percent.

On March 11, the Royal Institute of Chartered Surveyors released their most recent survey, which also revealed a "modest slowdown" in the sales market. According to the report, which considers sentiment data instead of transaction data, the net balance score for new buyer inquiries decreased from -1 percent in January to -14 percent.

Net balance scores, which can range from -100 to +100, are computed by deducting negative responses from positive responses. In this case, a result of -14 percent indicates that most respondents reported fewer new buyer inquiries in February.

Reduced newly-agreed sales were also reported by survey participants; in February, the net balance figure dropped from +2 percent in January to -13 percent.

"Some of the steam is coming from new sellers price expectations to fit the changing market conditions, which is a sensible reaction to attract buyer interest and will also help to support activity levels," the Rightmove property expert Colleen Babcock said.

It can also help your house sell during slow market times if you present it in the best possible light.

The managing director of York estate agency Hudson Moody, Ben Hudson, stated, "It may seem obvious, but tidy up, declutter, and make sure any obvious defects are put right before the photos are taken and viewers start coming round."

What is the current state of home prices?

After a 2024 market recovery, home prices are currently at an all-time high.

Although house price indices are usually released after some time, the most recent data from Halifax and Nationwide indicates that prices have increased so far in 2025.

The average property price increased by 0.1 percent in January and 0.4 percent in February, according to Nationwide. In the meantime, Halifax reported that the average property price increased by 0.6 percent in January and then decreased by 0.1 percent in February, reaching 298,602.

Stamp duty adjustments may slow growth starting in April, especially in the south where a larger percentage of homes are subject to the tax. The majority of experts, however, predict that overall, home prices will close the year higher.

Amanda Bryden, Halifax's head of mortgages, stated that "the persistent lack of available housing supply combined with persistent demand suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year."

The average UK property will end the year 4 percent higher, according to estate agent Savills, while real estate firm Knight Frank predicts a 2 to 5 percent increase. Naturally, there will be regional differences; in the north, where affordability is less stretched, prices are currently rising more quickly.

Is this the right time to sell a home?

Both the status of the housing market and your unique situation will determine the answer to this question.

Although mortgage rates are still high when compared to their long-term average, they are on a downward trajectory and are predicted to continue to decline throughout this year. For people considering taking on additional debt in order to upsize, this could be discouraging.

However, since home values tend to increase when interest rates decline, waiting until mortgage rates are lower may force you to make a higher asking price when you eventually decide to move.

Accordingly, the decision regarding when to sell may be influenced by whether you are purchasing another property concurrently and the price of that additional property.

"You can trade the loss of a premium on your property for being able to drive a harder bargain where you're moving," says Sarah Coles, head of personal finance at Hargreaves Lansdown's personal finance division.

This is not the case for people who are downsizing.

Downsizing might be a smart move at this time, as home values are increasing. You will make more money overall if the value of the house you are selling and the one you are purchasing has increased by, say, 5%. This is because the value of the house you are selling will have increased.

Those who are taking the leap and purchasing a more costly home may find the transaction more costly due to rising real estate prices.

However, prices for homes vary greatly throughout the United Kingdom, so you might discover that prices in your neighborhood and the area you want to relocate to have not changed in the same manner.

You will also need to think about the expenses if you are considering selling. This can include capital gains tax, stamp duty, legal fees, and estate agent fees. If you are selling in order to raise some cash, you should consider whether the costs will still make the sale worthwhile.