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The UK residential property market is once again seeing prices rise, with the average house price at £270,000 (approximately $330,000) in Q4 2024. According to a report by mortgage company Nationwide, this figure is 4.7% higher than in December 2023. This activity in the market is attributed to buyers keen to get in time to purchase a home before the stamp duty relief expires.
Stamp Duty relief will expire on 1 April 2025, and buyers will be required to pay it for properties worth more than £125,150 (over $154,000) instead of the current threshold of £250,000 (over $307,000). Experts expect an increase in sales over the next 3 months before the changes come into effect. Mortgage rates are likely to fall from 4.75% to 3.75% by 2026, which will also influence the rise in transactions.
Housing costs are rising across the country, with particularly significant figures in the north of England. According to analysts at the Zoopla service, variations in price growth range from 0.7% in the South East to 6.8% in Northern Ireland. In England, the average price increased by 3% year-on-year to £309,000 ($377,022), while in Wales it rose by 4% to £222,000 ($270,870). In Scotland, the figure increased by 5.5% to £197,000 ($240,366).
The gap in the rate of house price growth between the North and South is expected to continue in 2025. Experts are divided over the increase in house prices across the UK, but residential property prices are expected to increase between 2.5% and 4% in 2025.
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