According to real estate website Rightmove, activity has been high this season as movers try to complete deals before the property purchase tax rises in April 2024. The website reported that the average asking price for newly listed houses and apartments in the UK fell by 11.7% in December.
The asking price drop, following a 1.4% drop in November, was in line with the historical average decline for the end of the year, according to Rightmove. Rightmove claims that its data is not seasonally adjusted. Compared to a year earlier, asking prices were 1.4% higher. Rightmove’s December period ran from 10 November to 7 December. The number of agreed sales was 22% higher than last year, while demand from new buyers rose by 13%.
Nationwide and Halifax, two mortgage lenders, released seasonally adjusted data for November, showing the highest monthly price increase and the fastest annual rise in two years. According to Tim Bannister, director of property science at Rightmove, the exact impact of the stamp duty tax increase on activity in the coming year is uncertain.
“The stamp duty changes are weighing on the market at the moment, with some groups affected much more than others, and therefore keen to avoid the extra charge,” he said, as reported by Zawya.
In England, stamp duty on properties costing up to 300,000 pounds (USD 380,000) will be paid by first-time buyers from April onwards, instead of 425,000 pounds. Other buyers will also have to pay the tax starting at 125,000 pounds, and there will be an additional tax surcharge for second homes.
“The cut in Bank Rate and some mortgage rate reductions at the start of the year will help stabilise the market and boost sentiment and consumer confidence,” Bannister said.
In addition to stating that future rate cuts will likely be gradual, the Bank of England is forecast to maintain interest rates at 4.75%. Demand for property in the U.K. has declined, reflecting the growing challenges in the housing market as we approach 2025. Rising interest rates, tighter lending conditions, and inflation are reducing buyer demand, putting pressure on sellers to reduce prices. This slowdown also affects building contractors, who face fewer project opportunities and tighter budgets from developers. As uncertainty grows, both buyers and contractors are adapting to changing market conditions.
The average asking price for newly listed homes and apartments in Britain fell 1.7 percent in December, but activity was strong for the time of year as movers aimed to complete sales before the property purchase tax rises in April, property website Rightmove said on Monday.
Rightmove’s data is not seasonally adjusted and the drop in asking price – which followed a 1.4% drop in November – was in line with the historical average decline for the end of the year, the company said.
Compared to a year earlier, asking prices were 1.4% higher. Rightmove’s December period ran from 10 November to 7 December.
The number of agreed sales was 22 percent higher than a year earlier, while new buyer demand rose 13%.
Seasonally adjusted data from mortgage lenders Nationwide and Halifax for November showed the strongest monthly price rise and the fastest annual increase in two years.
Tim Bannister, Rightmove’s director of property science, said there was uncertainty about how the stamp duty tax hike would affect activity next year.
“At the moment the stamp duty changes are looming over the market, with some groups more affected than others, and therefore wanting to avoid the extra charge,” he said. From April first-time buyers in England will pay stamp duty on properties priced at 300,000 pounds ($380,000) instead of 425,000 pounds, other buyers will pay the tax from 125,000 pounds and the tax surcharge for second homes will also rise. “The cut in bank rate and the drop in some mortgage rates at the start of the year will help stabilise the market and boost sentiment and consumer confidence,” Bannister said.
The Bank of England is expected to keep interest rates on hold at 4.75% on Thursday and has said future rate cuts are likely to be gradual. On Friday investors were expecting a rate cut of three-quarters of a point by the BoE next year. Average asking prices for newly listed homes and apartments in Britain fell by 1.7% in December, but activity was strong for this time of year as movers aimed to complete sales before the property buying tax surged in April, property website Rightmove said on Monday.
Rightmove’s data is not seasonally adjusted and the drop in asking prices – which came after a 1.4% drop in November – was in line with the historical average decline for the end of the year, the company said.
Compared to a year earlier, asking prices were 1.4% higher. Rightmove’s December period ran from 10 November to 7 December.
The number of agreed sales was 22% higher than a year earlier, while new buyer demand rose by 13%.
Seasonally adjusted data from mortgage lenders Nationwide and Halifax for November showed the strongest monthly price rise and the fastest annual increase in two years.
Tim Bannister, Rightmove’s director of property science, said there was uncertainty about how the stamp duty tax increase would affect activity next year.
“The stamp duty changes are weighing on the market at the moment, with some groups more affected than others, and so they may want to avoid the additional charges,” he said.