London Housing Market Slows as Stamp Duty Changes Loom

Buyer demand in London has dropped 3% year-on-year, contrasting with stronger growth in northern England and Scotland ahead of April's tax revisions.

From April 2025, the nil-rate stamp duty threshold for first-time buyers will decrease from £425,000 to £300,000, impacting affordability in high-cost areas like London.
Around eight in 10 first-time buyers in London are expected to pay stamp duty under the new rules, compared to less than half under the current system.
London is experiencing a 'stamp duty hangover,' with buyer demand down 3% year-on-year due to a rush in late 2024 to avoid higher taxes.
In contrast, northern England, the Midlands, and Scotland are seeing buyer demand rise over 10% year-on-year, driving above-average price growth.
The average UK house price is £267,500 as of February 2025, with national price growth slowing to 1.8% annually, down from 1.9% in January.