UK Property Market Sustains Growth as Buyers Rush to Beat Stamp Duty Changes

House prices have marked their sixth consecutive monthly increase, driven by prospective homeowners rushing to complete purchases ahead of impending stamp duty modifications. The latest data from Nationwide reveals the average UK home price climbed 0.4 per cent in February, reaching £270,493.

The monthly increase surpassed economists’ predictions of 0.2 per cent, pushing property values to their highest point since the 2022 mini-budget. Current prices now sit merely £1,800 below their summer 2022 peak, representing a marginal 0.6 per cent gap from the record high.

Market analysts attribute this robust performance to buyers accelerating their purchasing decisions before more stringent stamp duty regulations take effect on 1 April. Capital Economics UK economist Ashley Webb notes that the housing market continues to demonstrate resilience despite economic challenges and recent mortgage rate adjustments.

The year-on-year comparison shows a 3.9 per cent price increase, with only three months registering declines throughout the past year. Improving affordability metrics reveal the average house price now stands at 5.9 times the average UK salary, a significant improvement from the pandemic peak when the ratio approached 7 times earnings.

Taylor Wimpey’s chief executive, Jennie Daly, observes a renewed urgency among potential buyers who had previously delayed their moves. Transaction data supports this trend, with the latter half of 2024 recording a 14 per cent increase compared to the same period in 2023.

Industry experts project continued market volatility in the immediate term, with Nationwide’s chief economist Robert Gardner anticipating a surge in March transactions followed by a temporary slowdown. Despite these short-term fluctuations, Pantheon Macroeconomics forecasts a 4 per cent annual price growth for the current year, supported by strong real wage growth and sustained employment levels.