As of February 8, 2025, the UK’s housing market is experiencing significant activity, particularly among first-time buyers aiming to finalize purchases before the upcoming stamp duty changes in April. According to Halifax, house prices rose by 0.7% in January, reaching an average of £299,138. The impending policy adjustment will lower the tax-free threshold from £425,000 to £300,000, prompting many to expedite their buying decisions.
Despite economic challenges, key indicators suggest a stable housing market. The new Halifax data contrasts with Nationwide’s, which showed slower house price growth. Nonetheless, regional price increases vary, with Northern Ireland witnessing the highest annual growth at 5.9%. Experts forecast varying price increases for 2025, contingent on interest rate adjustments and overall market conditions. The long-term housing supply shortage and affordability improvements are expected to support continued, albeit modest, price growth.
In summary, the UK’s housing market is currently experiencing record-high prices and sustained investor interest. However, forthcoming policy changes and economic factors warrant close monitoring by all market participants.
