7 April 2025
If you are covering the latest Halifax house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"The housing market’s resilience is wavering with a second monthly decline in prices. The latest Halifax data shows house prices fell by 0.5% in March. On an annual basis, prices are now £296,699 compared to £298,274 in previous month.
"Borrowing still remains expensive by historic standards. Many would-be movers paused plans last year due to volatility in the mortgage market, and we are now seeing signs of that demand returning — albeit cautiously, resulting in volatile monthly house price indices. But the traditional spring bounce appears to be more muted than usual.
"Adding to this, the news of tariffs might start to spook would be buyers as once again unpredictability seeps into the market. But, at present swap rates which dictate fixed rate mortgage deals have tumbled as traders speculate that there could now be further rate cuts to fuel economic growth in the face of the impact of the tariffs. Affordability therefore could improve at least in the near term.
"The recent changes to Stamp Duty Land Tax, effective from April 1st, have also influenced buyer behaviour.. The reduction of the nil rate threshold from £250,000 to £125,000 means that more buyers are now subject to stamp duty charges. First-time buyers are particularly affected, with their threshold decreasing from £425,000 to £300,000. These adjustments have led to a flurry of activity as buyers aimed to complete purchases before the deadline, but by March, it would have been too late reducing demand and driving down prices. We may see a continued short-term dip in transactions as the market adjusts to the new tax landscape with house prices dropping slightly too.
"The enduring supply constraints continue to prop up prices avoiding big drops, but the market’s trajectory will depend on how the UK economy is impacted by the new policies coming from the United States."
