Upcoming changes to stamp duty should motivate first-time buyers to buy a property.
The average price of a UK home ended 2024 close to the £300,000 mark, according to the UK’s biggest mortgage broker. Its calculations suggested UK house prices increased by 3.3% when comparing the end of the year to the start, although the average value dipped slightly in December. It means the average home now costs £297,166.
In April, house buyers in England and Northern Ireland will start paying stamp duty on properties over £125,000, instead of over £250,000 at the moment. First-time buyers currently pay no stamp duty on homes up to £425,000, but this will drop to £300,000.
Housing experts expect sales to increase over the next few months, ahead of the stamp duty changes, before falling away afterwards. There is also an expectation of a steady reduction in interest rates during 2025, potentially starting with a cut in February, which could mean lenders cutting the cost of new fixed mortgage deals in anticipation.