London Daily

Focus on the big picture.
Wednesday, Jul 02, 2025

Britain's booming property market adds £20,000 to homes in a year

Britain's booming property market adds £20,000 to homes in a year

Average house price hits record high of £258,204 in April, 12 months after Covid closed the market
The average British house price reached a record high of £258,204 ($363,198) in April, as the stamp duty holiday fires up the booming market with almost £20,000 added to the value of a home since the market was closed by Covid-19 a year ago.

House prices in April were up 1.4 per cent from March and 8.2 per cent higher than a year earlier, according to the Halifax House Price Index on Monday, the highest annual growth rate in five years.

“House prices in April eclipsed the record high set the month before as the market continued to maintain its recent momentum,” said Russel Galley, managing director of Halifax.

“The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the government scheme.”

Britain's housing market soared last year after the first Covid-19 lockdown brought the market to a standstill, creating pent-up demand, and Chancellor of the Exchequer Rishi Sunak's stamp duty break, unveiled in July, boosted activity even more.

The tax break, initially due to expire at the end of March, was extended by Mr Sunak in his March budget, with the first £500,000 of any property purchase in England or Northern Ireland remaining exempt from the levy. There will also be a £250,000 tax-free allowance until the end of September.

Home sales increased to their highest ever level in March, according to government property transaction data, up 3.2 per cent from February with 190,980 deals. Meanwhile, mortgage lending rose by £11.8 billion in March - the strongest net increase since records began in 1993.

While Mr Galley expects the influence of the stamp duty holiday to fade gradually in the coming months as it is tapered out, low interest rates and continued demand will continue to underpin prices in the market.

“We expect recent levels of activity to be sustained over the short term as buyers continue to search for homes with more space and potentially better suited for their new working patterns,” Mr Galley said.

“Savings built up over the months in lockdown have given some buyers even more cash to invest in their dream properties, while the new mortgage guarantee scheme may have eased deposit constraints for some prospective homebuyers who previously thought their first step on the housing ladder was a few years away.”

Looking ahead, Mr Galley remains cautious about the market’s medium-term prospects despite growing optimism about the UK economy thanks to the success of the vaccination programme.

The Bank of England said on Thursday it expects the UK economy to enjoy its strongest peacetime growth in 2021, with output set to expand 7.25 per cent.

“The current levels of uncertainty and potential for higher unemployment as furlough support ends lead us to believe that house price growth will slow to the end of the year,” Mr Galley said.
Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
×