UK House Prices Rise for Sixth Consecutive Month as Buyers Rush to Avoid Tax Changes

Average house prices increased by 0.4% in February, driven by a surge in transactions ahead of April's stamp duty threshold reductions.

The average UK house price reached £270,493 in February, marking a 3.9% annual increase and the sixth straight month of growth, according to Nationwide's index.
The impending April stamp duty changes, which will reduce tax-free thresholds for first-time buyers, have prompted a rush in transactions, particularly among those seeking to avoid higher tax bills.
Nationwide reported a 14% increase in housing transactions in the second half of 2024 compared to the same period in 2023, though overall activity remains below pre-pandemic levels.
Experts predict a temporary surge in sales during March, followed by a slowdown, as buyers accelerate purchases to beat the tax deadline.
Lower mortgage rates, including sub-4% offers, and rising wages have improved affordability slightly, though housing remains expensive by historical standards.