UK Property Market Update: 7 March, 2025
Here’s a quick update on the latest developments in the UK property market over the past week.
Property Prices: Mixed Signals in the Market
The UK property market has shown varied trends recently. According to Halifax, house prices saw a slight decline of 0.1% in February, bringing the average property price to around £298,600. Meanwhile, Nationwide reported a 0.4% increase in house prices for the same period, suggesting a 3.9% annual growth.
This contrast highlights differing conditions across regions, with some areas experiencing stable demand while others show signs of price softening.
Mortgage Rates: Increased Competition Among Lenders
In response to evolving market conditions, major lenders have introduced more competitive mortgage rates. Nationwide has launched a 3.99% rate for remortgage customers, while Barclays is offering a 3.96% five-year fixed Green Home mortgage for those with a 60% loan-to-value (LTV) ratio.
These developments suggest growing competition in the mortgage sector, with lenders adjusting their offers to attract buyers.
Interest Rates: Bank of England Cuts Base Rate
The Bank of England recently reduced the base interest rate by 0.25 percentage points, bringing it to 4.5%. This move comes amid efforts to support economic growth, though policymakers have indicated that future rate changes may be gradual given ongoing economic uncertainties.
Policy Changes: Anticipated Stamp Duty Adjustments
Attention is now focused on the upcoming changes to Stamp Duty Land Tax (SDLT), expected to take effect on April 1. The adjustments may influence buyer behavior, with some seeking to finalize transactions before the new rules come into force.
Market Outlook
With fluctuating house prices, shifting mortgage rates, and anticipated policy changes, the UK property market continues to reflect a complex landscape. Investors are closely monitoring these trends as they assess their next steps.
We’ll be back with more updates on the latest property market developments.