0:03 AM, 13th February 2025, About 10 months ago 3
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Despite a slow start to the year, property prices are expected to surge, with first-time buyers driving the market when stamp duty changes come into effect in April.
According to e.surv house price index, house prices grew by just 0.1% in January 2025.
However, despite the slow growth, this marks the first time in four months that house prices have increased.
E.surv’s house price index reveals the average sale price of a home rose by 0.1% to £352,300.
Despite this modest increase, average annual prices remain 3% lower than a year ago and nearly £25,000 below the peak of late 2022.
Rob Owens, head of research at e.surv, says: “Our latest house price index reveals a nuanced picture of the housing market in England and Wales in January 2025.
“The continued drag from southern England, particularly London, significantly impacts our overall metrics. This drag is largely due to affordability constraints, with stretched affordability and higher mortgage rates making it difficult for buyers to enter the market.”
According to e.surv, the North East and North West were the only regions experiencing year-on-year price growth. In contrast, much of southern England continues to struggle, with house prices decreasing by 3.3% year-on-year.
However, Mr Owens says the coming months could see a surge in house prices due to stamp duty changes.
From April, stamp duty thresholds in England will be lowered. For first-time buyers, the exemption threshold will drop from £425,000 to £300,000, while for standard residential properties, it will fall from £250,000 to £125,000.
Mr Owens says: “However, there are signs of forward momentum. First-time buyer demand surged following the April Stamp Duty rise.
“With mortgage approvals increasing and the Bank of England’s recent base rate cut to 4.5%, we anticipate further market strengthening in the coming months.”
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Member Since December 2023 - Comments: 1514
18:04 PM, 13th February 2025, About 10 months ago
If SDLT increases surely that will lead to lower house prices
DPT
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Member Since October 2020 - Comments: 1048
5:01 AM, 14th February 2025, About 10 months ago
Yes, I dont get their logic either!
Godfrey Jones
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Member Since September 2024 - Comments: 95
12:05 PM, 14th February 2025, About 10 months ago
Why??? Why lower SDLT? It’s madness just to help fill the imaginary black hole created by Rachel from Accounts.
Labour promised NOT to tax the everyday workers of this once great Country. It seems to me they have done just the opposite. It’s time Labour were ousted and Reform stepped in. Put a ‘no more immigrants notice on the door’ for 3 years, like Denmark, and those already here, including Muslims, who step out of line, commit any kind of crime, or fail immigration, are returned to their country of origin immediately. No wonder we have financial problems; we have allowed an additional10 million people increase when we haven’tgot the resources, housing, hospital beds, and infrastructure to cope. It time our Gov started caring about the genuine people of this country and sod giving money to Somalia or India when we could help Landlords house Tenants and help first time buyers buy houses. And then what about incentivising old people to downsize. I wanted to give my daughter my house and I have hers without any money changing hands. We couldn’t do it, why, because the Gov still wanted a ridiculous amount in Stamp Duty. Absolutely preposterous!!