UK house prices surged to a record high in January ahead of stamp duty changes

2025-03-25 13:17:20

New figures reveal that the average UK house price reached a record £299,138 in January, just months before the first-time buyer stamp duty relief is set to end in April.

House prices increased by 0.7% month on month and by 3% year on year, with London maintaining the highest average house price at £548,288, noting a 2.8% rise year on year, as reported by City AM.

"Affordability is still a challenge for many would-be buyers, but the market’s resilience is noteworthy," commented Amanda Bryden, Halifax's Head of Mortgages. Bryden predicts mortgage rates will "hover" between 4% and 5% in 2025.

House prices continue to be elevated against average earnings; the first-time buyer (FTB) house price to earnings ratio was at 5.0 at the end of 2024, significantly exceeding the long-term average of 3.9.

However, Braden highlighted ther