London Daily

Focus on the big picture.
Sunday, Aug 24, 2025

London house prices hit all-time high amid stamp duty holiday rush

London house prices hit all-time high amid stamp duty holiday rush

The average cost of a London rose to £501,320 in January, make for a 5.3 per cent annual increase rate

London house prices hit a new all-time high in January as buyers continued to flock to take advantage of the stamp duty holiday.

The average cost of a home on the capital rose 0.1 per cent in the month to reach £501,320, an annual rate of increase of 5.3 per cent.

Prices have been rising steadily – apart from a blip in October – since the market was reopened after the first lockdown in May last year.

The market has been fuelled by Chancellor Rishi Sunak’s decision to waive stamp duty on the first £500,000 of any transaction.

The initial March 31 deadline for completed deal to qualify for the stamp duty holiday was extended to the end of June in the Budget.

Ewen Bunting, managing director of London estate agents James Pendleton said that agreed sale prices in the capital have jumped to 99.4 per cent of asking price since the Budget, up from 97.6% during the first two months of the year.

He said: “The offers we’re seeing at the moment really are electric and buyers are having to get closer to asking prices than at any point in the past five years.

“When the stamp duty extension was confirmed, there was some concern that vendors would cause the market to seize up by refusing to share the stamp duty discount but that hasn’t transpired at all.

“Demand has been so high in London that agreed sale prices are exceeding expectations and have accelerated away from the robust valuations we saw in January and February, when buyers were already in a rush to complete before the now-superseded end of March deadline.

“When it becomes a sellers’ market like this, you can count on plenty of properties going to best and final offers, and selling for well over asking price. That’s what has been happening more often in March and there’s no sign of it slowing down.”

Paul Stockwell, chief commercial officer of lender Gatehouse Bank, said:

“The housing market is off to a strong start this year with prices still being driven up annually, primarily by buyers seeking larger homes and outside space, and the early signs are that demand is going to continue in the short-term making for a busy spring and summer.

“There is also the underlying factor of limited supply due to some would-be sellers holding off putting their properties on the market over fears of spreading infection, which may continue to drive prices even higher as we enter the spring.”

Newsletter

Related Articles

0:00
0:00
Close
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
×