A third (32%) of homes for sale on Zoopla are currently chain-free. The online property site explains that 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, a factor that second homeowners will be taking into account when deciding whether to keep or sell.
Zoopla points out that 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 land tax (SDLT) 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% increase in buyer enquiries.
Zoopla believes this interest is likely to increase further as homeowners and first-time buyers make last-minute offers in a bid to avoid higher SDLT bills.
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.
Zoopla senior property researcher Izabella Lubowiecka commented: “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.”
Hargreaves Lansdown head of personal finance Sarah Coles said: “Around a third of properties on the market right now are being advertised as having no chain, which rescues buyers from the hell of hanging on for everyone else in the chain to get their act together.
“Despite a bit of a reprieve on capital gains tax rates on property in the Budget, landlords aren’t convinced that the government has finished its tax raid on second home owners. The extra stamp duty surcharge on buying these homes is likely to have convinced them that the tax regime isn’t going to get more generous any time soon.”
She added:”They’re taxed more on the way in, frozen income tax thresholds mean more tax each month, and then there’s tax when they come to sell, and each of those could hit harder over time. It means plenty of landlords are getting out while the going is good.”