Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
In December 2024, UK average asking prices for newly listed homes fell by 1.7%, following a 1.4% drop in November, aligning with year-end trends, Rightmove reported. Buyer interest surged, with agreed sales up 22% and demand rising 13%, driven by urgency to avoid April 2025 stamp duty hikes. From April, first-time buyers will pay tax on properties above GBP 300,000 (down from GBP 425,000), and second-home buyers face higher surcharges. Experts predict a 4% price rise in 2025, supported by potential mortgage rate cuts. Labour's planning reforms aim to accelerate housing development, potentially bolstering the market further.
According to Rightmove, in December 2024 the average asking prices for newly listed UK homes dropped by 1.7%. This came after a 1.4% decrease in November and followed typical year-end trends. Despite lower prices, buyer interest stayed strong as many aimed to finalise purchases before the stamp duty tax hike in April 2025. Advertisement
From April, changes to stamp duty in England will mean first-time buyers will pay taxes on properties costing more than GBP 300,000, down from the current threshold of GBP 425,000. Other buyers will start paying tax from GBP 125,000, and second-home buyers will face higher surcharges. This has encouraged many to act quickly to avoid the additional costs.
Buyer activity grew significantly in December compared to last year. Agreed sales increased by 22%, and new buyer demand increased by 13%. Tim Bannister from Rightmove mentioned uncertainty about how the stamp duty changes would impact the market next year. He noted that groups expecting higher charges are keen to finalise deals now.
Experts believe that adjustments in interest rates could stabilise the market. A Bank Rate cut and falling mortgage rates would likely boost buyer confidence. Currently, the Bank of England is holding interest rates steady at 4.75% with gradual reductions expected next year.
Rightmove expects a 4% rise in average asking prices in 2025 as mortgage rates may ease. The company noted the usual Boxing Day surge in home-buying interest, which could drive early-year activity. However, Bannister warned that the market is sensitive to economic shifts and unexpected events. He said a Bank of England rate cut might help steady the market and improve consumer confidence.
The Labour government, led by Prime Minister Keir Starmer, recently announced reforms to the planning system. The goal is to accelerate housing development and boost economic growth. These steps may also strengthen the property market in the years ahead.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
