House prices: Stamp duty changes will motivate buyers, says the Halifax
Published On Jan 7, 2025, 2:28 AM
The Halifax reports that the average UK home price is nearing £300,000, with a 3.3% increase over 2024. Upcoming changes in stamp duty will motivate first-time buyers as the threshold for stamp duty will drop from £250,000 to £125,000, with the no-stamp duty limit for first-time buyers reduced from £425,000 to £300,000. Despite affordability challenges, the housing market remains resilient. Experts predict increased sales ahead of the stamp duty changes but expect a decline afterward due to affordability issues. A potential reduction in interest rates could aid buyers later in 2025.
Stock Forecasts
ITB
Positive
The changes to stamp duty are likely to stimulate the housing market temporarily, especially for first-time buyers looking to purchase before the new rules take effect. However, long-term growth may be stifled by the overall affordability challenges and the uncertainty around future interest rates.
XHB
Negative
The housing market might face a downturn post-stamp duty change as buyers adjust to higher purchasing costs. The uncertainty in interest rates combined with affordability challenges will pressure housing-related investments.
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