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Published: 22 April 2025

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Market activity remains resilient despite the recent stamp duty increase, with most buyers who missed the deadline still proceeding.

Properties entering the market this month saw their average asking prices rise by 1.4% (or £5,312 in monetary terms) to a new record of £377,182.

According to Rightmove's analysis, this marks the first monthly price record since May 2024, with asking prices and activity typically higher during the Spring season.

In a sign of continuing market resilience, this month’s price increase is larger than the average April increase of 1.2%, despite the number of available homes for sale remaining at a 10-year high for the time of year. Whilst a seasonal increase in asking prices is a positive sign for the health of the market, new sellers need to be cautious of the high competition for buyers that they may face when setting their asking price.

Rightmove’s research shows that homes that are priced realistically from the start of marketing, rather than reduced later, are more likely to find a buyer, and in less than half the time on average. Meanwhile, the latest snapshot of market activity suggests that the stamp duty increase in England on 1st April hasn’t deterred most movers going through the sales completion process, and that new buyers and sellers still feel confident to enter the market.

Tarrifs

Over the last few days, the effects of President Trump’s tariff announcements have been unfolding. It’s too early to tell what the repercussions may be on the UK property market, but one potential impact of the announcements is that mortgage rates could drop more quickly, boosting buyer affordability.

“We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high," explained Rightmove property expert, Colleen Babcock.

"The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient. Confidence from new sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price.

She added, "The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons. Our research also shows that getting the price right the first time is key. Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.”

Stamp duty

Since the stamp duty increase, the level of agreed sales falling through has remained steady. This indicates that there has been no major pull-out from agreed deals by first-time buyers and home-movers who were unable to complete before the tax rise. The last-minute rush to complete sales from those who were fortunate enough to be able to beat the deadline means that the queue of buyers waiting to complete their purchase has eased by nearly 24,000 or 4%. It’s the first time that this queue has dropped during the month of March since the pandemic in 2020, though it has now started to tick up again.

Buyer demand across the regions

Overall, across the full month of March, new buyer demand was 5% higher than at the same time last year, and the number of new sellers coming to market was 4% higher. However, these are overall averages, and some segments and sectors of the market are faring better than others. In particular, there is a North and South divide in both price and buyer demand trends.

The majority of the Midlands and Northern regions, as well as Wales and Scotland, are seeing above-average increases in demand versus last year, and all have seen new price records this month. By contrast, the higher-priced South West and South East are seeing smaller increases in buyer demand and prices. London appears to be an outlier; despite being the only region with fewer buyers enquiring than at this time a year ago, average asking prices in London have also reached a new record this month, driven by inner London.

With London typically being more exposed to the impacts of geopolitical tensions, as well as currently seeing weaker demand trends, we may see this price trend fall back.

The full impact of President Trump’s tariffs will be felt over the coming weeks and months. As it stands, if the Bank of England opts for further and faster rate cuts, starting in May, this could lead to mortgage rates reducing more quickly than anticipated. Average mortgage rates remain high, and the current average five-year fixed mortgage rate of 4.72% is only slightly lower than the average of this time last year, which was 4.84%.

“It’s important to remember that among records and national trends, Great Britain’s housing market is made up of thousands of diverse local markets, each uniquely responding to market changes and world events," continued Babcock, adding, "London, for example, is likely to see greater knock-on effects from US tariffs than the rest of Great Britain, while Northern regions appear to be performing more strongly post-stamp duty rise.

She concluded, "It’s difficult to predict what the next few months will bring, but if mortgage rates reduce more quickly, it would be a helpful boost to buyer affordability.”

Industry reactions

Tom Bill, head of UK residential research at Knight Frank, comments, “The recent tariff turbulence underlines why sellers need to be realistic when setting asking prices, particularly in a market where supply is rising more quickly than demand. The economic backdrop is bumpy, but downwards pressure on mortgage rates as financial markets increasingly price in the risk of an economic slowdown will be positive for demand. The risk is that tariffs prove to be inflationary and start putting upwards pressure on borrowing costs, but we still expect modest single-digit house price growth this year as needs-based buyers drive demand.”

Nathan Emerson, CEO of Propertymark, said, “It is encouraging to witness the housing market continue to deliver growth, despite the increasingly complex economic challenges we face at the moment. Although the rush from many people in England and Northern Ireland to beat Stamp Duty threshold changes has now concluded, we are now progressing into the spring and summer months, which typically deliver strong momentum for the sector.

“We remain in a position where inflation is on a potential uneven footing, and this may impact any decision the Bank of England might make regarding interest rates when they next meet on 8 May.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says, “Attack is the best form of defence for some sellers.

“In our offices, we have also noticed many want to tough out the loss of the stamp duty concession last month, keep asking prices up and letting the market find a new ‘normal’.

“Others are recognising that the inevitable drop in demand must be reflected in a modest fall in prices, at least in order to generate viewings and offers. That is to say nothing of the impact on confidence due to domestic and international economic uncertainty. Fortunately, most are sitting on their hands hoping this will pass, which is helping keep fall-through rates and renegotiations to a minimum.”

Tomer Aboody, director of property lender MT Finance, says, “So far this year it has been a positive few months for the housing market with transaction levels improving, although still below pre-pandemic levels. This comparatively subdued activity illustrates how big an impact higher interest rates have had on the market and sentiment.

“All eyes are on the Bank of England to see whether there will be a further reduction in May, with any assistance here likely to boost activity now that the stamp duty concession has ended. Indeed, buyers may await further reductions before making their move."

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Published: 09 April 2025

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A prominent housing market analyst has suggested President Donald Trump’s tariffs have a silver lining after all.

In response to the latest house price index Tom Bill, head of UK residential research at Knight Frank, says: “As buyers adapt to higher rates of stamp duty, the positive news is that US trade tariffs announced last week have put downwards pressure on borrowing costs as markets price in an economic slowdown. 

“The Bank of England is now expected to cut rates three times this year rather than twice. The risk is that tariffs ultimately prove to be inflationary and the spillover effects mean upwards pressure on mortgage costs in the UK. For now, the spring market feels steady although the prospect of a tax-raising autumn Budget will throw more uncertainty into the mix later this year.”

Bill’s comments came following data from the Halifax showing that UK house prices fell by 0.5% in March, a drop of £1,575. 

Despite this, the annual growth rate remained steady at 2.8%, with the typical UK property now valued at £296,699.

Amanda Bryden, head of mortgages at the lender, says: “House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.

“Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.

“However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year.”

High profile agents have generally reacted calmly to the dip in prices – although do not necessarily agree that more rate cuts are on the horizon.

Jeremy Leaf, north London agent and a former RICS residential chairman, comments: “Although the small reduction in house prices noted last month has continued, activity still held up relatively well as the figures will not cover transactions which completed before the deadline to take advantage of the stamp duty concession. There’s no doubt that many purchases were brought forward as a result so we might have expected to see more impact in the data.

“Buyers and sellers who missed out on the stamp duty savings had the choice to stay put, keep to previously-agreed terms and continue with their move or try to re-negotiate in an attempt to find some middle ground. The last option has proved the most popular in our offices. However, worries about short-and-longer term economic prospects both here and abroad, have been driving that decision-making (or lack of it) over the past few weeks at least.”

And Jason Tebb, president of OnTheMarket, adds:”The housing market continues to shake off external economic concerns demonstrating remarkable resilience, with good levels of activity and interest, particularly ahead of the end of the stamp duty concession. Recent base rate cuts have done much to provide a boost to confidence and activity in the market. With the stamp duty savings now behind us, further rate reductions from the Bank of England would be timely, providing much-needed impetus as the year progresses.

“The relative steadiness of house prices suggests that affordability is keeping a lid on values with buyers not prepared to pay inflated amounts. Sellers keen to take advantage of what is traditionally a busy spring market should seek advice from an experienced agent to take into account local market nuances and price accordingly if they wish to achieve a timely sale.”

Nathan Emerson, chief executive of Propertymark, remarks: “This house price reduction will be a huge disappointment to many sellers hoping to make gains on a house sale to climb up the housing ladder, but it could also be an opportunity for aspiring homeowners to take advantage of the slight reduction in house prices and take their first step, or next step, onto the housing ladder.  

“Hopefully this month on month dip is only temporary. The spring and summer months normally spur on a flurry in housing activity, especially at a time when there are many competitive mortgage deals out there right now as a result of the reduction in interest rates last year. 

“However, with housing playing a vital role in the UK economy, international events could jeopardise the Bank of England’s target of a 2% inflation rate, which may thwart their ambitions to reduce interest rates further. The housing market must remain stable ahead of the Bank of England’s next decision on interest rates in May.”

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Published: 26 March 2025

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Chancellor Rachel Reeves will deliver her first Spring Statement today and there are hopes for much-needed housing market support.

Reeves is facing the pressure of low economic growth and high inflation and while no major tax changes are expected, her policy plans could hit the market.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “With housing playing a key part in the UK Government’s plan for change, the Spring Statement must ensure government policy protects the delivery of more social and affordable housing and local authorities have the resources they need across planning, enforcement and infrastructure.

“Policymakers must also fully understand the need to reform housing benefits so they reflect real rental costs, and the UK Government must continue to target resources to tackle the cladding crisis and improve building safety to help boost economic growth.”

With Stamp Duty set to increase from 31 March, reverting to pre-September 2022 thresholds, Jonathan Handford, interim managing director of Fine & Country is urging the Government to reconsider.

He said: “As one of the few tools available to stimulate the property market, he believes Stamp Duty should be reduced rather than increased.

“At a time when borrowing costs remain high, the additional burden of Stamp Duty acts as a deterrent, discouraging homeowners from moving.

“For many would-be movers, particularly families looking to upsize or older homeowners considering downsizing – the upfront tax cost is simply prohibitive.

“Reducing Stamp Duty would not only make it more affordable to move, but the resultant increase in transaction volume would likely offset any shortfall in per-transaction revenue for the Treasury. More importantly, it would deliver a significant boost to the broader economy.”

He is also calling for the Government to reintroduce a modernised Help to Buy Scheme.

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Published: 26 March 2025

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Vida Homeloans, a specialist lender, has made a number of enhancements to its product ranges, including reductions to its Residential products by up to 0.30% and Buy-to-Let products by up to 0.54%.

They have also announced a refreshed Fee Saver range with new products across Residential and Buy-to-Let, available for standard, HMO/MUB, and Expat cases.  Additionally, they have decreased the minimum loan size to £150k for Buy-to-Let Limited Editions, allowing landlord customers more options for lower-value properties.

Ross Williams, head of mortgage product management at Vida, comments: ‘We’ve seen swap rates in the market drop over the course of January. We always endeavour to pass these savings on to our potential customers through rate reductions across our ranges.’  

Vida has also expanded its list of accepted Scottish postcodes, now including 14 additional postal codes.

Meanwhile United Trust Bank mortgages has announced significant rate reductions across its Buy-to-Let mortgage product range with reductions of up to 176bps.

The specialist lender is particularly keen to attract more HMO, MUB and holiday let business with 5-year fixed rates for single dwelling AST products starting from just 4.99% and HMOs/MUBs from 5.29%.

Highlights include: 

Standard (single dwellings on an AST)

•                  2yr Fixed Rates from 5.69%

•                  5yr Fixed Rates from 4.99%

Specialist (HMO and MUB up to 10 rooms/units)

•                  2yr Fixed Rates from 5.69%

•                  5yr Fixed Rates from 5.29%

Non-Standard (Holiday Lets)

•                  2yr Fixed Rates from 5.89%

•                  5yr Fixed Rates from 5.94%

UTB mortgage director Buster Tolfree says: “It has been a bumpy couple of years for landlords and BTL brokers with the sector having to deal with higher interest rates, tougher EPC requirements and uncertainty created by the Renters Rights Bill. However, in our experience landlords are a resilient bunch and with good quality rental property still in short supply, it’s a sector we’re committed to supporting for the long term. As a prominent lender in the specialist BTL space, we feel obliged to lead from the front.”

And Principality Building Society is implementing reductions across residential and Joint Borrower Sole Proprietor (JBSP) mortgages, with cuts of up to 0.29% on residential products and 0.35% on JBSP mortgages.

But selected rates will increase, including a 0.02% rise on some two-year fixed products.

And finally Roma Finance has launched RomaPRO, a buy-to-let product aimed at property investors and developers. 

RomaPRO, suited for special purpose vehicles, offers loan sizes from £75,000 up to £2m.  The product targets transitions from development projects, refinancing, or new acquisitions. 

Key features of RomaPRO include commercial rates linked to the Bank of England base rate, top-slicing options, and suitability for HMOs, MUBs, holiday lets, and serviced accommodation.

Now available on Brickflow, a digital marketplace for property finance, this partnership allows brokers and borrowers to compare Roma’s offerings with other lenders. 

The integration with Brickflow also enhances the process for brokers by simplifying funding proposals and opportunities to expand their services.