Chain-Free Homes: More popular than ever
10 Jan, 2025
The tax overhaul will raise costs for two categories: first-time buyers, as well as home movers. At the centre of this shift are chain-free homes – a term that’s becoming increasingly familiar to anyone buying or selling property right now. But what are chain-free homes, and why are they so in demand?
What Are Chain-Free Homes?
To put it in simple terms, a chain-free home is one where the person selling does not rely on another property being purchased simultaneously with this house. This avoids the common domino effect, where one transaction depends on several others being completed successfully. Alternatively, it is less complicated, which would entice buyers and sellers into purchasing the place.
Some well-known chain-free properties include:
● Home owned by landlords or investors.
● Holiday homes that the homeowner no longer needs.
● Probate sales after inheritance.
Why the Stamp Duty Deadline Is Driving Demand
Many will find the purse strings of stamp duty tightened going into 2025, though, especially for first-time buyers, who are being withdrawn on purchases up to £425,000. It's a big extra cost. For those already on the ladder, the changes bring higher rates, adding thousands to the final bill.
With this looming financial hit, buyers are eager to complete purchases before the deadline. This makes chain-free homes especially appealing since they reduce delays as well as minimise the risk of deals falling through – a huge advantage when time is of the essence.
Are Chain-Free Homes More Expensive?
Indeed, chain-free homes can command a premium. On average, they can be up to 7% more expensive than similar properties with chains attached thought this can be for other reasons too – if the property is newly built for example.
But for most buyers, the reduced hassle and increased speed are well worth the extra expense in a market where competition is fierce.
For sellers, it is quite good news as demand grows.
What Buyers Need to Know
If you’re in the market for a home, particularly before the 2025 stamp duty changes, here’s what to keep in mind:
- Act Quickly but Wisely
Properties are moving fast, but don’t let urgency lead to rash decisions. Get your finances in order, including a mortgage agreement in principle, and be prepared to move swiftly once you find the right home. - Be Ready for Competition
Chain-free homes are in demand, and you’re likely to face competition from other buyers. Consider making your offer as appealing as possible by offering to complete it at a convenient date or showing that your funds are secure. - Factor in Extra Costs
While free-from-chain homes save you time and reduce stress, they might stretch your budget a little. Be clear on what you can afford, and do not forget the premium you will be paying.
- Get a Good Conveyancer
A skilled conveyancer can make all the difference in a tight market. Look for someone who understands the urgency and can expedite the legal side of things.
For Sellers: Timing is everything.
If you’re thinking of selling, particularly a chain-free property, now might be the perfect time. The current market conditions, coupled with the looming stamp duty changes, mean buyers are motivated and often willing to pay a premium.
To make your property even more appealing:
● Ensure it’s well-presented with any minor repairs or cosmetic updates sorted.
● Price it realistically but don’t undervalue its chain-free status.
● Highlight the chain-free nature prominently in your listing to attract the right buyers.
What's next for the market?
The housing market is notorious for being unpredictable, but a few things seem sure as we approach 2025. Demand for chain-free homes will probably stay high, especially in places with good schools, good transport links, and employment opportunities. Second, competition will intensify as the stamp duty deadline nears, making it increasingly a seller’s market for chain-free properties.
However, after April 2025, we could see a cooling-off period as the surge in demand reduces. But there are plenty of good reasons to see 2025 as a very positive year for the Sussex property market.