UK Property Buyers slow down with stamp duty deadline looming

Although predictions from many of the larger property companies and pundits that 2025 and beyond shows the UK property market to be growing, with the stamp duty deadline looming buyers seemed to be shying away from making quick decisions across the sector in February. The RICS reported a low in buyer demand, and the lowest since November 2023, hinting that higher stamp duty costs are expected to hit the housing market from 1st April. There are also concerns by many over interest rates, inflation and global events, that in turn affect the property market in general terms.

The Halifax reported that the typical property price dropped by 0.1% in February, after hitting a high in January, after the average price increased by 0.7%.

Rental figures also show a slowing down in demand for the 4th month in a row, which is the longest period without an increase since RICS lettings records began in 2012.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The window of opportunity has effectively slammed shut on buyers, because even in February they knew there was next to no chance of getting a sale sorted before the end of the stamp duty holiday. Unsurprisingly, it has sucked some of the life out of the market. New buyers and sales have both dropped – with new buyers at their lowest ebb since the end of 2023. House prices have continued to rise, but not as quickly, and agents are fairly convinced we’ll be in this lull for a while yet.” She weant on to add that a “savings and resilience barometer” by Hargreaves Lansdown had found that “younger renters in particular are struggling and, on average, generation Z and millennial renters have just £73 left at the end of the month”.

It is widely accepted though, that as much as caution in the market is suggested, property prices will continue to rise throughout 2025 and beyond, with Knight Frank predicting 2.5% growth, and Savills 4%.