Changes to stamp duty this year could cause some volatility in the housing market, experts have warnedHouse prices increased by 4.7 per cent annually in December to a figure just below their all-time high, according to Nationwide.In April, a temporary “nil rate” threshold on stamp duty for first-time buyers will shrink back to £300,000, from £425,000 currently, meaning those buying homes over £300,000 will pay extra tax on purchases.
He said: “At the start of the year, house prices remained high relative to average earnings, which meant that the deposit hurdle remained high for prospective first-time buyers. This is a challenge that had been made worse by record rates of rental growth in recent years, which has hampered the ability of many in the private rented sector to save.
“For example, a typical mortgage rate for someone with a 25 per cent deposit hovered around 4.5 per cent for much of the year, three times the 1.5 per cent prevailing in late 2021, before the Bank of England started to raise the bank rate.” Looking at different types of property, Mr Gardner said: “Terraced houses have seen the biggest percentage rise in prices over the last year, with average prices up 4.4 per cent in 2024.