UK House Prices Reach Record High Ahead of April 2025 Tax Changes

Report By Aqsa Noreen

UK house prices surged to a record high in January, as buyers rushed to finalize purchases ahead of stamp duty increases set to take effect from April 1, 2025.

Key Highlights from the Halifax House Price Index

• Average UK property price: £299,138 (€358,822), up 0.7% from December.
• Annual house price growth: 3% in January 2025, slightly down from 3.4% in January 2024.
• Main driver: Buyers looking to complete transactions before stamp duty changes impact first-time buyers.

Impact of Upcoming Stamp Duty Changes

• Current threshold: First-time buyers pay no stamp duty for properties up to £425,000 (€509,796).
• From April 2025: The exemption limit will drop to £300,000 (€359,856), making home purchases more expensive.

Regional House Price Trends

• Northern Ireland: Strongest annual price growth at 5.9% (average price £205,473 / €246,469).
• Wales: Prices increased 3.6% annually, averaging £227,397 (€272,767.3).
• Scotland: Modest 2.4% rise, with properties priced around £210,690 (€252,726.8).
• North East England: 5.2% annual rise, average price £178,696 (€214,349.4).
• London: Remains most expensive, with an average house price of £548,288 (€657,682.4), up 2.8% annually.

As the April stamp duty deadline approaches, demand is expected to remain strong in the short term, but potential price adjustments may follow once tax changes take effect.