Upcoming changes to stamp duty will "motivate" first-time buyers to buy a property, according to the Halifax.
So, it's going down, and making houses more affordable? No, Reader. Quite the opposite...
The average price of a UK home ended 2024 close to the £300,000 mark, the UK's biggest mortgage broker said. Its calculations suggested UK house prices increased by 3.3% when comparing the end of the year to the start, although the average value dipped slightly in December. It means the average home now costs £297,166, it added. In April, house buyers in England and Northern Ireland will start paying stamp duty on properties over £125,000, instead of over £250,000 at the moment.
The only reason this might just 'spark first time buyers' is if they decide to buy now before it gets any higher - they will be those already intending (and able) to buy.
Housing experts expect sales to increase over the next few months, ahead of the stamp duty changes, before falling away afterwards. Alice Haine, analyst at Bestinvest, said: "This will deliver a particularly heavy hit to first-time buyers who will not only need to raise enough money for a deposit but also enough to cover the higher tax bill."
And once that small pool has run dry, what then?
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