Date
Text
min read

House prices dip as buyers brace for higher stamp duty

House prices pic

House prices dipped by 0.1% in February, but annual growth held steady at 2.9%, with the cost of an average property down £213 to £298,602.  

Halifax reports that most areas of the UK saw a slowdown in house price inflation last month, although Scotland’s annual growth increase of 3.8% compared to 2.5% in January, bucked the trend.

Northern Ireland continued to have the strongest annual property annual price growth in the UK, largely unchanged at 5.9% in February.

It comes ahead of changes to stamp duty. From April 1, homebuyers will start paying stamp duty if the property they are buying costs more than £125,000, rather than the £250,000 they start at now.

Areas with highest growth

In England, Yorkshire and Humberside recorded the strongest annual property price growth for the first time since July 2021, up 4.1% compared to the previous year.

Meanwhile, London’s annual house price growth eased considerably from 2.6% in January to 1.6%.

Halifax explains that while growth has slowed overall, market activity remains strong and comparable to pre-pandemic levels, demonstrating a resilience among buyers that’s been evident in the face of higher borrowing costs.

“While those affordability challenges persist, the ongoing shortage of housing supply coupled with sustained demand suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year,” predicts Halifax’s Amanda Bryden.

Jason Tebb, president of OnTheMarket, said "The housing market continues to shake off external economic concerns demonstrating remarkable resilience, with encouraging levels of activity and interest.

“The steadiness of house prices suggests that affordability is keeping a lid on values with buyers unable and unwilling to pay inflated amounts.

“Higher interest rates have dampened activity so last month's rate cut from the Bank of England will be helpful in giving the market a boost. As we approach the end of the stamp duty concession this month, further cuts could give the market some much-needed impetus later in the year.”

Tags:

landlords
House prices
Halifax

Author

Comments