According to Halifax, the upcoming modifications to stamp obligation will “incentivize” first-time consumers to buy property.
Britain's greatest mortgage dealer mentioned the common UK residence worth in 2024 shall be nearer to £300,000.
Its calculations present that UK home costs are up 3.3% when evaluating the start to the tip of the yr, though the common worth fell barely in December.
This means the common home worth is now £297,166.
The figures come days after rival lender, Nationwide, mentioned the UK housing market was “remarkably flexible” In 2024, costs elevated by 4.7% on the finish of the yr in comparison with the start.
Both lenders use their very own mortgage information, and their standards differ barely when calculating home costs, so Nationwide places the common property worth at round £270,000.
Both lenders don’t embody consumers who purchase houses with money, or buy-to-let offers, of their estimates. Cash consumers account for about one-third of residence gross sales.
Halifax estimates that the common home worth is now near £300,000 shall be a disappointment to many first-time consumers, nevertheless it comes within the context of giant variations in costs in numerous elements of the nation.
However, Amanda Bryden, head of mortgages at Halifax, mentioned the stamp obligation change in April would give potential first-time consumers “even more incentive to get on the housing ladder and bring forward any home-buying plans”.
“Mortgage affordability will continue to be a challenge for many people,” he mentioned.
“Although employment conditions are not markedly worse than the recent slowdown, buyer demand should remain relatively good and, with all this in mind, we expect modest house price growth this year.” Are.”
Housing experts expect sales to rise over the next few months, before the stamp duty changes, followed by a decline.
Home buyers in England and Northern Ireland will start paying stamp duty on properties worth more than £125,000, instead of the current £250,000.
First-time buyers currently pay no stamp duty on homes worth up to £425,000, but this will drop to £300,000 in April.
A continued decline in interest rates is also expected throughout 2024, potentially starting with a cut in February, which could mean lenders could cut the cost of new fixed mortgage deals in anticipation.
However, Bank of England Governor Andrew Bailey recently said that “the world is so unsure” that it can’t be predicted precisely when and by how a lot rates of interest will fall.
With inputs from BBC
