Almost a third of homes currently for sale are being sold chain-free, according to Zoopla, as buyers want to act quickly ahead of the stamp duty rise in April.
The property website revealed that 32 per cent of homes currently for sale are marketed as chain-free.
Unchained refers to a property that is not dependent on the seller finding another place to live before it can be sold.
These sales are generally less likely to fail or be delayed.
Stamp duty fever: A week after the autumn budget, buyer inquiries for chain-free homes are 33% higher compared to those not advertised as chain-free, according to Zoopla
Most real estate transactions are usually linked to a chain of other buyers and sellers. They are all connected and if one sale collapses or is delayed, the others are affected.
Izabella Lubowiecka, senior real estate researcher at Zoopla, says: ‘There are several reasons why a house can be chain-free.
‘Individuals may be selling an inherited home, families may be moving together, moving from two homes to one, or investors and second owners may be selling additional properties.
‘Now is a good time to look for properties, with more chain-free homes available than in previous months.
“Broadening the search to include new homes could also offer a wider range of options.”
Buyers are in a rush to buy before their stamp duty bills rise from April 1 next year, making chain-free homes an attractive proposition.
Starting April 1 of next year, tThe price at which stamp duty begins to be collected will again be £300,000 per first time buyersfrom its current level of £425,000.
For first-time buyers, this could mean paying no stamp duty on a purchase worth £425,000 instead. They will soon pay £6,205.
But costs rise even further for any first-time buyer purchasing a property worth between £425,000 and £625,000.
A first-time buyer purchasing a house worth £625,000 currently pays £10,000 in stamp duty. But from April 1, that figure will rise to £21,250, an increase of £11,250.
While affordability remains a concern for many first-time buyers, it is encouraging that 41 per cent of two-bedroom homes are currently listed as chain-free on Zoopla.
Removal companies are also not immune to changes to stamp duty. The threshold at which they start paying the tax is falling from £250,000 to £125,000.
This means anyone buying a property worth more than £125,000 will pay up to £2,500 more in stamp duty.
Zoopla says that a week after the budget, chain-free homes are attracting more interest compared to homes not advertised as chain-free, with listing views seeing an average increase of 9 per cent and an average increase of 33 per cent. percent in buyer queries.
More investors and second home owners are also thought to be looking to sell due to changes to the way second homes are taxed. These properties are usually free of strings.
From April 2025, councils will be able to charge a premium of up to 100 per cent additional council tax on second homes, a factor second home owners will take into account when making their purchasing decisions. or sale.
Caught in a chain: Most property sales are linked together and buyers and sellers depend on each other to make their purchase or sale successful.
Matt Thompson, sales director at Chestertons, says: ‘We have seen a clear increase in the number of people looking for a chain-free property.
‘Most off-chain buyers have been renting for a while and are in a position to move quickly.
“Although there has been a slight increase in the number of chain-free properties coming up for sale since the autumn budget, demand continues to outstrip supply, creating a competitive market environment.”
However, while buying chain-free may save on the cost of stamp duty, they could end up paying more overall as sellers can usually get a price premium for a chain-free home.
«Listing a property without a chain can attract more buyers to make an offer; particularly those who are eager to move sooner rather than later.
“Due to the increased demand for these types of properties, sellers typically require a premium that can range from 3 to 7 percent, depending on the location and overall condition of the property.”
Based on average property price of £294,000. According to the latest Halifax House Price Index, that could mean paying a premium of between £8,820 and £20,580 for an unchained home.
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