Changes to council tax also affected the market, particularly for owners of second homes. From April, local authorities were permitted to impose a council tax premium of up to 100% on second properties, provided they gave a year’s notice. Among surveyed second homeowners in May, 35% said they were considering selling, with average annual bills set to rise by £840.10.
Looking ahead, the market is expected to remain active as buyers and those remortgaging respond to interest rate cuts. The Bank of England reduced the base rate to 4.25% in May, its second cut this year. Barclays data shows 35% of remortgagers are considering longer fixed-rate deals, while 32% are exploring flexible options such as standard variable or tracker mortgages.
Barclays’ research found that 65% of buyers offered below the asking price, while sellers accepted an average of £6,632 less than their listing price. Recent government changes to mortgage rules are likely to sustain the buyer’s market into the second half of the year.
Patel said Barclays introduced several measures in response to these trends, including removing deposit requirements for Right to Buy purchases and launching Mortgage Boost, which allows family or friends to support buyers without direct financial gifts. The bank has also raised maximum loan amounts for high loan-to-value mortgages to £640,000 for houses and £310,000 for flats, enabling more buyers to access higher-priced properties with a 10% deposit.
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