31 January 2025
If you are covering the latest property transaction and stamp duty data , please see the following comment from Rosie Hooper, chartered financial planner at Quilter Cheviot:
"The UK housing market showed some positive signs at the end of 2024, with residential transactions in December climbing to 96,330—up 19% from December 2023 and 3% higher than November 2024. This increase in activity suggests that the market is adapting well to the ongoing shifts in interest rates, with buyers getting more comfortable with the new normal of higher borrowing costs.
"Looking at Q4 2024, residential transactions were up 9% compared to the previous quarter and a strong 20% year-on-year. Much of this surge can be attributed to buyers rushing to secure deals ahead of potential tax changes in the Autumn Budget. There’s also likely a push to lock in purchases before the stamp duty changes come into play in April 2025. Alongside this, SDLT receipts have followed suit, increasing by 31% compared to Q4 2023, with residential property receipts up by 16% over the same period.
"While transactions are rising, house price growth has started to slow. Nationwide data out this morning showed that January 2025 saw a modest 0.1% price increase, a marked slowdown from the previous months. Annual house price growth also dipped to 4.1% from 4.7% in December, signalling that the market is cooling slightly but is likely to pick back up later in the year. First-time buyers, in particular, are feeling the pinch, with average deposits now sitting at £53,000, a steep rise from previous years. Add in higher mortgage rates and ongoing affordability challenges, and it’s clear that the market is adjusting to a higher-cost borrowing environment.
"The higher SDLT thresholds for first-time buyers are set to drop significantly, which will likely drive a final push of activity ahead of the deadline although most deals going through now will pay the higher amounts. The change is set to add further costs to already-struggling buyers, particularly those looking to get on the property ladder."
