Two-thirds of homes on the market are chain-free as buyers want to take quick action before stamp duty rises

Nearly a third of homes currently for sale are being sold chain-free, according to Zoopla, as buyers look to take quick action before stamp duty rises in April.

The real estate website shows that 32 percent of homes currently for sale are marketed as chain-free.

Chain-free refers to a property that is not dependent on the seller moving somewhere else before it can be sold.

These sales are typically less likely to fail or be held up.

Most real estate transactions are often linked to a chain of other buyers and sellers. They are all connected and if one sale fails or is delayed, the others are affected.

Izabella Lubowiecka, senior property researcher at Zoopla says: ‘There are several reasons why a property can be chain-free.

‘Individuals may sell an inherited home, households may move in together and move from two homes to one, or investors and second owners may sell additional properties.

‘Now is a good time to look for homes, there are more chain-free homes available than in previous months.

‘Broadening the search for new homes can also offer a wider choice.’

Buyers are rushing to buy before their stamp duty rises from April 1 next year, making chain-free properties attractive.

From April 1 next year, tThe price at which stamp duty will be charged will return to £300,000 startersfrom the current level of £425,000.

For first-time buyers, this could mean no stamp duty payable on a purchase worth £425,000. they will soon pay £6,205.

But the costs become even higher for first-time buyers who buy a home with a value between €425,000 and €625,000.

A first-time buyer purchasing a home worth £625,000 currently pays £10,000 in stamp duty. But from April 1 that will rise to £21,250, up from £11,250.

While affordability remains a concern for many first-time buyers, encouragingly 41 percent of two-bedroom homes are currently listed as chain-free on Zoopla.

Movers are also not immune to the changes in stamp duty. The threshold at which they start paying tax drops from £250,000 to £125,000.

It means anyone buying a property worth more than £125,000 will have to pay up to £2,500 more in stamp duty.

Zoopla says that, a week after the Budget, chain-free properties are attracting more interest compared to properties not advertised as chain-free. The number of home views increased by an average of 9 percent and the number of buyer inquiries increased by an average of 33 percent.

It is thought that more investors and second homeowners are also looking to sell due to changes in the way second homes are taxed. These properties are usually chain-free.

From April 2025, municipalities will be able to charge a premium of up to 100 percent additional council tax on second homes, a factor that second home owners will take into account when making their sales or purchase decisions.

Caught in a Chain: Most real estate sales are interconnected, with buyers and sellers all relying on each other to make their purchase or sale successful

Matt Thompson, head of sales at Chestertons, said: “We have seen a marked increase in the number of house hunters looking for a home without the chains.

‘Most chain-free buyers have been renting for a while and can move quickly.

‘Although there has been a slight increase in the number of chain-free properties for sale since the Autumn Budget, demand still exceeds supply, creating a competitive market environment.’

While buying chain-free can save on stamp costs, they may end up paying more in the end because sellers can typically get a price premium for a chain-free home.

‘Offering a property chain-free can indeed entice more buyers to make an offer; especially those who would like to move sooner rather than later.

“Due to the increased demand for such properties, sellers often demand a premium that can range from 3 percent to 7 percent depending on the location and overall condition of the property.”

Based on the average property price of €294,000. According to Halifax’s latest house price index, that could mean paying a premium of between £8,820 and £20,580 for a chain-free home.