House prices in Britain reach record highs driven by new taxes coming into effect in April!
The Halifax House Price Index for January in the UK was released on Friday, with the average property price rising to a new record of £299,138 (€358,822) last month. House prices rose by 0.7% in January, compared with a fall of 0.2% in December. On an annual basis, prices rose by 3% in January 2025, compared with 3.4% in the same month last year.
This was largely driven by more buyers trying to complete their home purchases ahead of the planned increase in stamp duty that came into effect in April. From 1 April this year, the temporary increase threshold in SDLT will end. This is expected to have the biggest impact on first-time home buyers.
At the moment, first-time buyers pay no stamp duty when buying a home worth £425,000 (€509,796). However, this threshold is set to drop to £300,000 (€359,856) from April onwards.
Northern Ireland still experienced the strongest house price growth on an annual basis, with house prices rising by 5.9% in January, although prices slowed from 7.3% in December. The average house in Northern Ireland set buyers back around £205,473 (€246,469) in January.
In Wales, house prices rose by 3.6% year-on-year in January, with buyers paying around £227,397 (€272,767.3), on average, for a property. In January, Scotland saw a more moderate increase in house prices, compared with other parts of the UK, at 2.4% year-on-year. The average Scottish property was priced at around £210,690 (€252,726.8) last month.
Coming to England, property prices in the North East were higher than in the North West in January year-on-year, seeing a 5.2% increase, with the average property price reaching £178,696 (€214,349.4). London remained the most expensive city for house prices in the UK, with the average property costing around £548,288 (€657,682.4), which was a 2.8% increase year-on-year.
However, the main issue in the housing sector is still a lack of supply, which could push house prices further up this year. While property prices are expected to rise in the run-up to the stamp duty change deadline at the end of March as buyers and sellers race to beat the tax increase, what happens from there remains uncertain. With the recession looming again and buyers facing a higher tax bill on their purchases, house price growth is likely to be more subdued if sellers are forced to lower their asking prices to secure deals across the board.
The start of April, when employers start paying a higher rate of National Insurance on employee wages and a higher minimum wage, could be a sticking point for the economy if companies struggle to absorb the extra costs and choose to pass those costs on to consumers. The ongoing cost of living crisis in the UK has also contributed to some homeowners struggling to afford mortgages.
Add to this higher bills for households and an ever-increasing tax burden, as a result of frozen personal tax thresholds, and it is understandable that some potential and existing property owners are still under pressure. Whether it is a buyer struggling to raise a deposit for their first property or an existing homeowner struggling to meet their monthly payments, the mortgage war is not over and this could have implications for house prices.
Lenders can be guilty of using more attractive rates to mask high arrangement or product fees. Calculating the overall cost of the product is essential to determine whether one product works out cheaper than another.
Poll
Balluku: Albanian products, everywhere in Europe "Agriculture in its best days, but there are still many challenges ahead"
More and more Albanian agricultural products are being exported to Europe and beyond. Deputy Prime Minister Belinda Balluku, also Minister of Infrastructure......
Annual vehicle tax/DPSHTRR: Payment within the deadline avoids paying for two years at once!
The General Directorate of Road Transport Services announced that vehicle owners must pay the vehicle tax within the validity period to avoid paying for two......
"Countries committed to climate plans" - UN climate chief reacts to US withdrawal from Paris pact
Countries are staying committed to their national climate plans and seeking to lead the clean energy transition, the UN's top climate official said in his......
A more connected South Adriatic region: Increased cooperation between the Port of Durres, Montenegro and Italy!
A group of representatives from the Durres Port Authority is currently participating, on the second day of the meeting, for the "SA Connectivity" project......
Albania, host of the World Law Congress 2027/ Rama from Spain: Will bring 3 thousand lawyers!
Prime Minister Edi Rama is in Madrid today where he was received in a meeting by King Felipe VI at the Zarzuela Royal Palace. The head of government has......
"Exchange rate, properly monitored" - IMF Representative, Sebastian Sosa, in meeting with Governor Sejko
The International Monetary Fund (IMF) will continue to provide technical assistance to the Bank of Albania in the future. Recently, the Governor of the Bank......
Figures, there is less work in the north! - Dhamo: The reason is emigration in these areas, but also the economy
Albania is moving towards an increasingly pronounced division into two different employment realities. According to data from Eurostat, about 17% of the......
Geothermal energy in Albania - AKBN: Untapped potential, here are the areas where it can be developed
Albania has potential for the development of geothermal energy, as the National Agency for Natural Resources has published a manual with areas where this......
