‘House prices are also holding steady, and growing in some local markets which has put the market on firm footing despite the UK’s economic outlook painting a mixed picture’
House sales in the UK saw a significant surge in December, with a nearly 20% increase compared to the same month the previous year, according to new data.
HM Revenue and Customs (HMRC) estimated that 96,330 transactions were made in December 2024, marking a 19% rise from December 2023 and a 3% increase from November 2024. The rush in activity is thought to be due to home buyers trying to complete purchases before an upcoming stamp duty deadline.
From April 1, the “nil rate” stamp duty band for first-time buyers will decrease from £425,000 to £300,000, affecting those in England and Northern Ireland. Nick Leeming, chairman of estate agent Jackson-Stops, commented: “The rise in transactions in December can largely be attributed to the pending stamp duty deadline in March.
“No doubt buyers across London and the South East in particular would have been pushing for deals to get across the line given the traditionally higher tax rates in this part of the country. This is evidenced across the Jackson-Stops network with the number of new applicants far outweighing new instructions in December in Bury St Edmunds, Newmarket, Dorking, Northampton, Reigate and Sevenoaks.
“House prices are also holding steady, and growing in some local markets which has put the market on firm footing despite the UK’s economic outlook painting a mixed picture.”
Favourable predictions indicate that the Bank of England base rate will be cut multiple times this year, which will be beneficial for borrowers. The HMRC data coincided with Nationwide Building Society’s report that the annual rate of house price growth decreased to 4.1% in January, down from 4.7% in December.
Across the UK, house prices saw a 0.1% month-on-month increase, reaching £268,213. Jason Tebb, president of OnTheMarket, stated: “Two rate reductions in the second half of last year bolstered buyer and seller confidence, and with further cuts expected this year, there is cautious optimism which bodes well for the spring market.”
He added: “With stamp duty changes providing an extra motivation for first-time buyers in particular to transact over the next few months, a further rate cut from the Bank of England would be timely and give further impetus to the spring market.”