Halifax has announced that the UK housing market has hit record highs, with the average property price reaching £299,138. Property values had recovered in January following a slight dip in December of the previous year, marking the weakest rate of annual growth coming in at 3.0% since July 2023. Despite this, Halifax suggests that the market exhibits “noteworthy” resilience. First-time buyers, in particular, are trying to complete deals before an April increase in stamp duty rates. Amanda Bryden, head of mortgages at Halifax, stated that there was “strong demand” and growth in lending.
In October 2021, Chancellor Rachel Reeves announced that reduced stamp duty rates in England and Northern Ireland would end in April 2022. House buyers will now start paying stamp duty on properties over £125,000 rather than £250,000. First-time buyers currently pay no stamp duty on homes up to £425,000, but this will drop to £300,000 in April. Halifax stated that “as things stand, mortgage rates are likely to hover between 4% and 5% in 2025, influenced by both global financial markets and domestic monetary policy.”
London remains the most costly area to buy property, with the average property costing £548,288. Northern Ireland saw the greatest annual price rise of 5.9%, with an average property price now at £205,473. Wales’ house prices saw a 3.6% increase compared to the previous year, with average property values at £227,397. In England, the North East replaced the North West as the area with the strongest price growth, with property prices increasing by 5.2% to £178,696. Scotland saw a lower rise of house prices overall, with values increasing by 2.4%, with properties now averaging at £210,690.
According to Jonathan Hopper, chief executive of Garrington Property Finders, rising UK prices are primarily concentrated in Wales and Northern England. He also highlighted that, in other areas, there has been more modest price growth and that homeowners ought to price their homes carefully to avoid getting “stuck unsold on the shelf.” It should be noted that Halifax’s data is based on its mortgage lending only, which is exclusive of cash purchases or buy-to-let deals, while cash buyers account for approximately one-third of housing sales
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