Particle.news

Download on the App Store

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.

Image
In the Autumn Budget, it was confirmed that stamp duty thresholds in England would lower from 1 April

Overview

  • 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.