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House prices rise in February as buyers rush to beat stamp duty changes

Date: 28 February 2025

2 minute read

28 February 2025

If you are covering the latest Nationwide house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
 
“House price growth picked up the pace a little in February, with the average house price rising 0.4% on a month on month basis, following only modest growth of 0.1% in January. However, the annual rate of house price growth dropped slightly, rising 3.9% in February compared to 4.1% in January.
 
“With the upcoming changes to stamp duty in April, we could see this monthly uptick continue. The sharp rise in tax bills expected due to the lowering of stamp duty thresholds has seen many buyers forge ahead with purchases that they might otherwise have held out on, and house prices could bloat as a result. While prospective buyers will need to take care that they do not end up paying over the odds for a home, particularly given they will now be cutting it very fine to get a sale across the line before the change comes in, it is understandable that they would wish to mitigate the tax bills.
 
“The government’s decision not to extend the increase to the stamp duty threshold will pile even more pressure on prospective first-time buyers in particular. Those who have been scrimping and saving to build an adequate deposit will soon find themselves facing a hefty tax bill of up to £5,000, eroding affordability further and making homeownership all the more expensive.
 
“On a slightly more positive note, the Bank of England’s recent interest rate cut has seen lenders trim mortgage rates which should help ease affordability pressures somewhat. While inflation is higher than the Bank would like, the need to stimulate the economy could result in further cuts and we could see demand for housing picking back up. However, the lack of supply means that even though monthly payments may become more manageable, securing a home could still present a challenge and prices may remain inflated.
 
"Prospective buyers will have a difficult environment to navigate, so seeking professional financial and mortgage advice will be crucial to help them secure the best deals in what remains an unpredictable market."

Megan Southwell

External Communications Manager

Notes to Editors:

About Quilter plc

Quilter plc is a leading wealth management business, helping to create brighter financial futures for every generation.

Quilter plc oversees £157.4 billion in customer investments (as at 30 June 2026).

It has an adviser and customer offering spanning financial advice, investment platforms, multi-asset investment solutions and discretionary fund management.

The business is comprised of two branded segments: Quilter and Quilter Cheviot.

Quilter encompasses the financial advice network and national, Quilter's investment platform and multi-asset solutions and Quilter Invest, the digital savings and investment app.

Quilter Cheviot is a discretionary fund management and financial planning business.

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Senator House, 85 Queen Victoria Street, London, EC4V 4AB, United Kingdom. Registered number: 6404270.  Registered in England.

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