by Sam Akbay
UK House Prices Hit Record High Ahead of Stamp Duty Changes
The UK property market has reached a new milestone, with the average house price soaring to a record-breaking £299,138, according to the latest figures from Halifax. This comes as buyers rush to secure deals ahead of the upcoming stamp duty changes set to take effect in April.
Resilience in the Market Despite Slower Growth
While the annual growth rate in house prices has slowed to 3.0%, marking the weakest increase since July 2023, the property market continues to show notable resilience. Halifax, the UK’s largest mortgage lender and part of Lloyds Banking Group, reported a recovery in prices this January following a slight dip in December.
Amanda Bryden, Head of Mortgages at Halifax, highlighted the strong demand for new mortgages and an increase in lending activity. Many first-time buyers appear to be driving this surge, keen to complete transactions before the revised stamp duty thresholds take effect.
What’s Changing in Stamp Duty?
The changes, announced in last year’s Budget by Chancellor Rachel Reeves, will see the reduced stamp duty rates in England and Northern Ireland come to an end.
- Currently, buyers pay no stamp duty on properties up to £250,000, but from April 2025, this threshold will revert to £125,000.
- First-time buyers currently benefit from a £425,000 stamp duty exemption, which will be reduced to £300,000.
With these upcoming changes, many buyers are looking to secure properties now to take advantage of the more favourable stamp duty rates before they expire.
Regional House Price Trends
Across the UK, property values continue to climb, with some regions seeing stronger growth than others:
- London remains the UK’s most expensive market, with average property prices now at £548,288, a 2.8% increase from last year.
- Northern Ireland recorded the strongest annual price rise of 5.9%, bringing the average home price to £205,473.
- Wales saw property values increase by 3.6%, with the average price now standing at £227,397.
- The North East of England overtook the North West as the region with the strongest price growth, rising 5.2% to £178,696.
- Scotland saw more modest growth, with a 2.4% increase bringing the average house price to £210,690.
What Lies Ahead?
Despite uncertainties in the economy and global markets, the UK housing market remains steady. Key factors influencing the market include:
- Potential interest rate cuts by the Bank of England, which could make mortgages more affordable.
- Wage growth outpacing inflation, helping to maintain buyer confidence.
- Mortgage rates expected to stay between 4% and 5% throughout 2025, influenced by both domestic monetary policy and global financial trends.
Advice for Buyers and Investors
For those considering a property purchase, now could be an opportune moment to act before the stamp duty rates change. At Sam Akbay Property Agency, we’re here to help you navigate the market, whether you’re a first-time buyer, seasoned investor, or looking to sell your property in this dynamic environment.
Looking for expert property advice? Get in touch today to explore your options and make the most of the current market conditions.
