Home costs at new excessive forward of stamp responsibility change, says Halifax

UK home costs have hit one other document excessive with the typical property value reaching £299,138, Halifax has stated.

The UK’s largest mortgage lender, a part of Lloyds Banking Group, stated property values recovered in January after seeing a slight dip in December.

The annual progress in costs slowed to three.0%, which is the weakest charge since July 2023, however Halifax stated the market was displaying “noteworthy” resilience.

Amanda Bryden, head of mortgages at Halifax, stated there was “sturdy demand for brand spanking new mortgages and progress in lending”, which is perhaps being pushed by first-time consumers attempting to finish offers earlier than a rise in stamp responsibility in April.

Within the Finances in October final yr, Chancellor Rachel Reeves stated that decreased stamp responsibility charges in England and Northern Eire would finish in April this yr.

The modifications will imply that home consumers will begin paying stamp responsibility on properties over £125,000, as a substitute of over £250,000 in the intervening time.

First-time consumers at the moment pay no stamp responsibility on properties as much as £425,000, however this can drop to £300,000 in April.

“Regardless of geopolitical uncertainties, and waning shopper confidence, different key indicators look pretty constructive for the housing market,” stated Ms Bryden, with the Financial institution of England chopping rates of interest and family earnings outpacing inflation.

“As issues stand, mortgage charges are prone to hover between 4% and 5% in 2025, influenced by each international monetary markets and home financial coverage,” she added.

London stays the most costly place within the UK to purchase a home, with the typical property there costing £548,288, up 2.8% from a yr earlier.

Properties in Northern Eire noticed the strongest annual value rise of 5.9%, with a mean property now at £205,473.

Home costs in Wales rose 3.6% in comparison with final yr, with property values averaging £227,397.

In England, the North East changed the North West because the area with the strongest annual value progress, with values growing by 5.2% to £178,696.

Scotland noticed a decrease rise in home costs total, up 2.4%, with properties now costing a mean of £210,690.

Halifax’s home value information relies by itself mortgage lending, which doesn’t embrace consumers who buy properties with money, or buy-to-let offers. Money consumers account for a couple of third of housing gross sales.