Prices rose 0.7 per cent in the month following a drop of 0.2 per cent in December. They rose 3 per cent on an annual basis as buyers rushed to take advantage of the stamp duty tax break before it expires, the mortgage lender said.
Amanda Bryden, head of mortgages, Halifax, said the housing market had started on a ‘positive note’. “Affordability is still a challenge for many would-be buyers, but the market’s resilience is noteworthy.
“Despite geopolitical uncertainties, and waning consumer confidence, other key indicators look fairly positive for the housing market.
“As things stand, mortgage rates are likely to hover between 4 per cent and 5 per cent in 2025, influenced by both global financial markets and domestic monetary policy.
She said a lack of supply remined the key issue in the housing market. “This long-term trend, coupled with a gradual improvement in affordability, should support further modest house price growth this year,” she said.
Houses in Wales were up 3.6 per cent on January 2024 with properties now costing an average of £227,397. Scotland saw the lowest UK house price increases at 2.4 per cent with houses worth an average of £210,690.
London remains the highest average house price in the UK, at £548,288, up 2.8 per cent compared to January 2024.
Caption: Halifax house price index: year-on-year change in average UK house price. Photo: PA Graphics“The impending change in stamp duty land tax thresholds has been a motivating factor for aspiring homeowners, who currently pay no property tax on properties costing up to £425,000.
“Existing homeowners considering a move can also benefit from lower property tax charges provided they complete their deal before the end of March. At that point the temporary stamp duty relief reverts to the previous, higher levels though some first-time buyers appear determined to push ahead with purchases, despite the tax break change, to take advantage of better affordability conditions.”
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