Home costs at new excessive forward of stamp obligation change, says Halifax

UK home costs have hit one other file excessive with the typical property value reaching £299,138, Halifax has stated.

The UK’s largest mortgage lender, a part of Lloyds Banking Group, stated property values recovered in January after seeing a slight dip in December.

The annual progress in costs slowed to three.0%, which is the weakest charge since July 2023, however Halifax stated the market was displaying “noteworthy” resilience.

Amanda Bryden, head of mortgages at Halifax, stated there was “robust demand for brand new mortgages and progress in lending”, which may be being pushed by first-time patrons attempting to finish offers earlier than a rise in stamp obligation in April.

Within the Funds in October final 12 months, Chancellor Rachel Reeves stated that decreased stamp obligation charges in England and Northern Eire would finish in April subsequent 12 months.

The modifications will imply that home patrons will begin paying stamp obligation on properties over £125,000, as a substitute of over £250,000 for the time being.

First-time patrons presently pay no stamp obligation on houses as much as £425,000, however this can drop to £300,000 in April.

“As issues stand, mortgage charges are prone to hover between 4% and 5% in 2025, influenced by each international monetary markets and home financial coverage,” Ms Bryden stated.

Jonathan Hopper, chief govt of Garrington Property Finders, stated the minimize in rates of interest on Thursday would assist dwelling patrons and folks remortgaging.

“At current value inflation is centred on northern England and Wales.”

“Elsewhere, the value rises are way more modest and sellers want to cost their houses rigorously or threat seeing them caught unsold on the shelf.”

London stays the most costly place within the UK to purchase a home, with the typical property there costing £548,288, up 2.8% from a 12 months earlier.

Properties in Northern Eire noticed the strongest annual value rise of 5.9%, with a median property now at £205,473.

Home costs in Wales rose 3.6% in comparison with final 12 months, with property values averaging £227,397.

In England, the North East changed the North West because the area with the strongest annual value progress, with values rising by 5.2% to £178,696.

Scotland noticed a decrease rise in home costs total, up 2.4%, with properties now costing a median of £210,690.

“At current value inflation is centred on northern England and Wales.”

“Elsewhere, the value rises are way more modest and sellers want to cost their houses rigorously or threat seeing them caught unsold on the shelf,” stated Jonathan Hopper, chief govt of Garrington Property Finders.

Halifax’s home value information is predicated by itself mortgage lending, which doesn’t embody patrons who buy houses with money, or buy-to-let offers. Money patrons account for a few third of housing gross sales.