The UK property market experienced a significant decline with house prices dropping by 0.5% to £296,699, the sharpest decrease in value since March last year. This decline marks the second consecutive month that house prices have fallen, according to Halifax, the nation’s largest mortgage lender. The lender revised the February decline from 0.1% to 0.2%.

This downward trend follows a record surge in property transactions in January, when buyers raced to finalize deals before stamp duty increases in England and Northern Ireland took effect in April. Halifax’s head of mortgages, Amanda Bryden, noted that while house prices rose in January as buyers sought to beat the stamp duty deadline, with those transactions now complete, demand has normalized and new applications are slowing.

Chancellor Rachel Reeves announced in her October budget the end of temporary stamp duty cuts for England and Northern Ireland from April. The threshold for first-time buyers in England and Northern Ireland paying tax on homes has decreased from £425,000 to £300,000, and that for reduced rates for first-time buyers will drop from £625,000 to £500,000. The zero-tax stamp duty threshold for all housing in England and Northern Ireland has halved to £125,000 from £250,000.

Despite the current decline, economists and industry analysts forecast that house prices will continue to rise throughout 2025, driven by constrained supply and stable demand, despite concerns over the UK’s economic growth. The property market is also expected to be buoyed by decreasing mortgage rates, with markets anticipating further cuts in the base interest rate.

Source: https://www.theguardian.com/money/2025/apr/07/uk-house-prices-slide-stamp-duty-changes-halifax