"Those looking at buying a home before stamp duty rates increase in April 2025 should think about buying a chain-free home as they tend to complete much faster."
- Izabella Lubowiecka, senior property researcher at Zoopla
A third (32%) of homes for sale on Zoopla are currently chain-free, as investors and second homeowners have looked to sell amidst expected changes to the way second homes are taxed.
From April 2025, councils will be able to charge a premium of up to 100% in additional council tax on second homes. In addition, following last week's Budget, stamp duty on second homes has increased from 3% to 5%.
Chain-free homes often complete faster than other properties, making them an attractive prospect for those hoping to finalise their property purchases before the stamp duty rates in England and Northern Ireland increase in April 2025.
One week on from 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% and a 33% average increase in buyer enquiries. This interest is likely to increase further as homeowners and first-time buyers make last-minute offers in a bid to avoid higher stamp duty bills.
Whilst affordability remains a concern for many first-time buyers, encouragingly 41% of two bed homes are currently listed as chain-free on Zoopla. Two-bed properties are often popular with older buyers looking to downsize, as well as landlords and investors, so are more likely to be chain free when they come on to the market than other types of homes.
The North West, Yorkshire and the Humber and the South West have the highest proportion of chain-free homes at 36%, due in part to the second home hotspots within these areas, such as Carlisle (near the Lake District) and the Bournemouth Coast.
In the North of the country, Hull has a large proportion of homes for sale that are chain-free at 46.2%, the most common type being a two bed home. In the South, London suburbs and towns within more affordable areas of the commuter belt tend to have an above average number of chain-free homes for sale, such as Uxbridge at 44.7%, the most common type of home being a three bed property.
The proportion of homes available to buy without a chain tends to increase in the final months of the year, peaking in January - the most popular time of the year to list a home for sale.
Izabella Lubowiecka, senior property researcher at Zoopla, commented: “There are several reasons why a home might be chain-free. Individuals may be selling an inherited home, households might be moving in together, going from two homes to one, or investors and second owners could be selling additional property. Those looking at buying a home before stamp duty rates increase in April 2025 should think about buying a chain-free home as they tend to complete much faster. Now is a great time to look for properties, with more chain-free homes available than in previous months. Widening a search to include new homes might also offer a wider range of choice.”
