UK house prices hit record high in April despite stamp duty changes
The average UK house price rose 1.4 per cent in April despite fears of a market slowdown in the wake of changes to stamp duty.
UK house prices hit a new record high of £377,182, according to Rightmove.
Analysts said that lower mortgage rates have offset the impact of stamp duty changes and the typical seasonal slowdown.
“Attack is the best form of defence for some sellers,” Jeremy Leaf, north London estate agent and a former RICS residential chairman, said.
“In our offices we have noticed many want to tough out the loss of the stamp duty concession last month, keep asking prices up and letting the market find a new ‘normal’,” he added.
Prior to April 1, no stamp duty was charged on purchases up to £250,000. However, from this month, a two per cent charge now applies to homes purchased between £125,001 and £250,000.
Rightmove noted that while the seasonal increase in house prices is a “positive sign for the health of the market”, the high number of properties on sale means competition will be high.
Almost 54,000 home sellers have entered the market across England since the stamp duty deadline expired, according to estate agents Yopa.
Director of property lender MT Finance, Tomer Aboody, said: “All eyes are on the Bank of England to see whether there will be a further reduction in May, with any assistance here likely to boost activity now that the stamp duty concession has ended.
“Indeed, buyers may await further reductions before making their move.”
Investors have pencilled in up to four interest rate cuts this year, partly as a result of the global uncertainty caused by US President Donald Trump’s tariffs.
The UK’s 10-year swap rate slumped on April 7, and analyst expect it to fall further.
Lower swap rates are expected to feed through into mortgage rates, which would help affordability and give buyers renewed confidence to make their move.