Recent tax measures in the UK have led to increasing numbers of chain-free homes on the market.
- Councils will soon be able to raise council tax by 100% on second homes, effective April 2025.
- Stamp duty on second homes has increased from 3% to 5%, impacting property investors.
- Zoopla reports a rise in interest for chain-free homes, which are quicker to purchase.
- High proportions of chain-free homes are found in regions with popular second home locations.
The UK property market is witnessing a surge in the number of chain-free homes available for purchase. This comes in the wake of recent financial policies impacting property investors and owners of second homes. These changes are having a significant effect on how individuals and investors approach property transactions, particularly with the impending adjustments to council tax and stamp duty.
Starting April 2025, councils have been given the authority to impose up to a 100% premium on council tax for second homes. Simultaneously, stamp duty on these properties has already seen an increase, climbing from 3% to 5%. Such fiscal measures are expected to alter the landscape for property investors, prompting many to offload their secondary properties.
Chain-free homes, which often expedite the completion process of property transactions, have become particularly appealing in this context. Zoopla has observed a heightened interest in these types of homes, noting a 9% rise in listing views and a 33% increase in buyer enquiries. This trend is indicative of prospective homeowners and investors keen on finalising deals before the tax hikes take effect.
Despite ongoing issues of affordability, particularly affecting first-time buyers, there remains a notable presence of chain-free properties on the market. Interestingly, 41% of two-bedroom homes currently listed are chain-free, offering more accessible options for those looking to downsize or for investors seeking swift transactions.
Geographical data indicates that regions such as the South West, Yorkshire and the Humber, and the North West boast some of the highest proportions of chain-free homes. Notable locations include Carlisle and the Bournemouth Coast, with Hull and Uxbridge also recording significant numbers of chain-free listings, predominantly two and three-bedroom homes respectively.
The evolving tax landscape is driving a shift towards chain-free properties as stakeholders aim to secure deals before impending increases.
