Economists have been predicting a surge in buyers preparing for purchases before stamp duty increases in April.
The average UK house price rose by 0.4% to £270,493 (€328,278) during February, up from 0.1% the month before. Despite ongoing affordability challenges, the growth in February was notable, with six months in a row showing an increase in house prices despite孙子 challenges. This trend has been ongoing since February 2021.
The Chief Economist, Robert Gardner, noted that housing market activity has remained resilient, with 14% growth in total transactions during the second half of 2024 compared to the same period in 2023. However, the number of deals in 2024 was still 6% below the level in 2019, unaffected by the pandemic.
Gardner added that despite the rise in transactions, the activity remains subdued compared to historic levels. He highlighted that the last 12 months have seen a gradual increase in buy-to-let purchases involving mortgages, while rental increases and easing in buy-to-let mortgage rates have improved access to finance.
However, he foreeyes that the changes in stamp duty due to come into effect in April could generate volatility in the near term, as buyers shift their purchases to avoid additional taxes.
In the UK, home prices have shown a strong upward movement, increasing by 0.4% in February compared to the previous month. None of the other countries in the G-7 had record increases in UK house price growths. Globally,-history shows that home prices in other regions have seen strong growth, primarily attributed to the U.S. borrowing and stronger international lending.
Meanwhile, the UK saw a slowing in the UK’s real estate rescue, which has helped boost home prices in the UK and global markets through lending. In March, the growth was higher.
The uncertainty surrounding the 2024 housing market and UK purchasing behavior could lead to significant relocations, allowing businesses to focus on their core operations, while homebuyers may need to consider their preferences and future careers. However, he remains cautiously optimistic.
