The property market has kicked off the new year at a staggering pace as we enter 2025. Average property prices soared 1.7 per cent in January, marking the biggest increase at the start of the year since 2020, according to the latest figures. The rise not only caught homebuyers off guard, but also sparked widespread concern in the market.
Meanwhile, the number of sellers in the property market has reached an unprecedented peak so far this year. There are two core factors hidden behind the rise in house prices and the surge in home buying.
The primary factor is the Bank of England's recent decision to cut interest rates. Last week, the Bank of England's Monetary Policy Committee decided to cut the benchmark interest rate from 4.75 per cent to 4.5 per cent, a move that has undoubtedly injected new vigour into the property market.
Another big push is the expiring ‘Stamp Duty Reduction’ policy. According to industry insiders, as the policy enters the countdown phase, first-time buyers are scrambling to find their favourite properties in order to lock in the benefits before the stamp duty threshold is adjusted.
Currently, for first-time buyers, the benefit of stamp duty exemption is available on the purchase of properties worth up to £425,000. However, from 1 April this year, this exemption will be drastically reduced to £300,000 The change means that first-time buyers will be liable for thousands of pounds in additional stamp duty charges if they fail to complete their purchase before the policy change.
Against this backdrop, choosing the right property is particularly important for first-time buyers keen to take advantage of the benefits of the Stamp Duty Relief before it ends. In addition to ensuring that they have sufficient funds, buyers should also focus on ‘existing’ or ‘due by 1 April’ properties. This type of housing can not only ensure that buyers in the policy adjustment before the completion of the transaction, but also effectively avoid the uncertainty of the delay and other factors brought about by the risk.
In summary, in the face of the current complexity of the property market, first-time buyers should take advantage of the end of the ‘stamp duty holiday’ and choose their properties carefully in order to realise their dream of owning a home while enjoying the benefits of the policy.
Buy a property in the UK with a team of professionals ｜ Lansha Group
Founded in 2014 and headquartered in Paddington, London, Lansha Group has become one of the top 100 seafarers in the industry in the past 10 years, providing one-stop services for international property. We have many years of professional experience in dealing with all aspects of the property market, from choosing a property to opening a home, loans, solicitors, tenancy management and second-hand property sales. We provide 24-hour real-time service to our global clients, assisting them in dealing with the cumbersome formalities of property purchase and home inspection, so that they can move into their homes or invest in them with peace of mind. If you are looking to invest in the UK, Lansha Group has a professional investment team to assist you in selecting the best properties, analysing the housing information and regional development, and making a comprehensive assessment to choose the ideal home. Visit Lansha Group's website now to view our selection of properties and choose your dream home!
If you have any questions about buying a property in the UK, please feel free to contact us directly.
