One of the key trends in the market right now is the rapid sale of family homes priced below £1.5 million, but what affects property prices? The increasing appeal of turnkey properties that require minimal renovation means that properties within the £1.5 million price range, especially those that are move-in ready and close to good state schools, are selling quickly.
For sellers, the message is clear: homes that are ready to move into, especially those near sought-after schools, are highly desirable. A property that is well-maintained, modernised, and located in a family-friendly area stands a much better chance of securing a quick sale at a competitive price. Our conveyancers can assist in making the sale process even more streamlined by ensuring that the legal paperwork for these properties is handled efficiently to avoid delays in what is often a fast-moving market.
The Challenges of Higher-Priced Properties
The market is more difficult for sellers with properties listed for sale above £2 million or requiring significant renovation. These homes tend to linger on the market longer, with vendors often having to lower prices to attract buyers. Further, the effect of higher Stamp Duty Land Tax – which jumps up to 12% for any portion of the purchase price above £1.5 million—is another factor that can weigh on the market for expensive properties. This shift has created a situation where even well-located, high-value homes often require significant pricing adjustments to make them attractive to potential buyers.
A notable shift has also occurred in the preference for “doer-uppers.” Once, unmodernized properties were highly sought after by buyers looking to transform them into unique homes. However, the rising costs of renovations and the lack of available rental properties to live in while works are being completed means that many buyers are now deterred from purchasing such properties.
The Role of Pricing Strategy
During the Covid-19 pandemic, there was a surge in demand for homes with gardens and extra space, particularly in suburban areas. This led to some vendors pricing their properties at a premium—a trend that remains even in the current climate. However, with rising interest rates, increases to Stamp Duty rates from 1st April 2025, and broader economic uncertainty, this pricing approach can now backfire.
Sellers should therefore recognise when a more flexible approach is required in their pricing strategy. For buyers, on the other hand, understanding the potential for price reductions can help in making competitive offers. And although conveyancers do not advise clients on pricing strategies, they nevertheless play an essential role in ensuring that the legal process runs smoothly once an agreement is reached.
The Influence of Financial Anxiety
Amid rising interest rates and economic concerns, many homeowners are financially stretched. As more homeowners come off low-rate fixed mortgages, financial anxiety is increasing. For some sellers, this is leading to unrealistic price expectations, often based on emotional attachment to their property or a desire to recover costs from a previous purchase.
By being supportive, offering sound legal advice, and ensuring that transactions go through as smoothly as possible, conveyancers can help manage these emotions in the face of financial pressures.
Conclusion: Navigating a Complex Market
As National Conveyancing Week highlights, conveyancers can play a vital role in helping clients navigate today’s complex property market. Whether buying or selling, understanding factors like market trends, Stamp Duty implications, and pricing strategy can be hugely beneficial. By working closely with clients and providing expert guidance, conveyancers can help both buyers and sellers in adjusting their expectations and effectively managing the legal process once an offer has been accepted to ensure an overall smooth transaction.
