UK Housing Market Sees Increased Sales Activity Despite Price Sensitivity

Home buyers and sellers are rushing to close deals before April's stamp duty changes, while mortgage rate uncertainty tempers price growth.

House sales in the UK have surged, with 23% more transactions agreed in the past four weeks compared to the same period last year, marking the busiest year-end since 2020.
Buyers are becoming more price-sensitive, agreeing sales at an average of 3.6% below asking prices, up from 3.2% earlier in the year.
The upcoming April stamp duty changes, which will lower tax-free thresholds for homebuyers and increase rates for second-home purchases, are driving the sales rush.
While house prices grew 1.9% over the past year, growth is expected to remain moderate in 2025, with an estimated 2.5% increase across the UK.
Northern regions, including Northern Ireland and northwest England, are seeing faster price growth compared to the southeast, reflecting a catch-up after years of slower increases.