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2mo ago

UK House Prices Rise by £2,000 in February as Stamp Duty Deadline Looms

Slower growth in asking prices reflects heightened seller competition and upcoming tax changes, Rightmove reports.

A rainbow is seen over apartments in Wandsworth on the River Thames as UK house prices continue to fall, in London, Britain, August 26, 2023. REUTERS/Kevin Coombs/File Photo
Since September 2022, home buyers in England and Northern Ireland have benefited from a temporary stamp duty holiday Photographer: tagphoto Provider: Getty Images Source: iStockphoto Copyright: Thomas Holt
The number of people applying for a mortgage in principle through Rightmove rose by 49 per cent annually to a record high

Overview

  • The average asking price for a newly listed home in the UK increased by 0.5% in February, adding £1,805 to reach £367,994, according to Rightmove.
  • The rise is below the long-term average of 0.8% and follows a stronger 1.7% increase in January.
  • The March 31 end of the temporary stamp duty holiday in England and Northern Ireland is driving a surge in transactions, with 550,000 properties currently in the completion process—25% more than last year.
  • First-time buyers in high-priced areas like London face significant challenges due to additional stamp duty costs and a backlog in conveyancing, with 28% more first-time buyers in the capital navigating the process compared to last year.
  • Rightmove has called for reforms to the stamp duty system, including regional variations and a short extension to the tax break, while noting that market activity is expected to remain stable beyond the deadline.