There is no doubt that the economy has been battered by some turbulence recently: a new government, the end of the relaxed stamp duty, and the impact of the Trump tariffs. Despite all these crosswinds, industry commentators remain optimistic that the UK housing market will remain resilient throughout the year.
This is good news for anyone who is looking for properties for sale in Hackney or other London boroughs, where the housing market is especially competitive. A buoyant market means that there will be more choice, giving you the best chance of securing a place to live that ticks all of your boxes.
For example, there has been a lot of discussion about the end of the stamp duty holiday, and what effect this will have on the housing market. It created a bounce at the beginning of the year, as buyers rushed to complete before the higher rates were reinstated.
However, the reality is that 60 per cent of first time buyers will not be affected at all by the changes in stamp duty, because it only applies in their case if they are purchasing a property worth over £300,000. The average home across the UK currently costs £271,316, although the average is higher in London and the south east.
Despite rising bills, inflation rates are down and average wages are rising, so consumer confidence remains strong. Unemployment rates are also low, and it is expected that the Bank of England will lower interest rates later in the year. This will make mortgages more affordable for first time buyers and those already on the property ladder.
Nathan Emerson, chief executive at estate agent trade body Propertymark, told Forbes: “The housing market has witnessed an extremely encouraging start to the year with sustained house price growth year on year.”
He added: “Although we now sit at the very start of the amended stamp duty thresholds for England and Northern Ireland, we remain optimistic to see strong market momentum across the entire UK, as we head towards the traditionally busy summer months.”
“Although we are still seeing fluctuations within the rate of inflation, and a much needed cautious approach from the Bank of England regarding base rates, we are starting to see enormously welcome sub-4% mortgage deals offered by some lenders.”
Mortgage approvals fell slightly during February, but gross mortgage lending is at its highest rate since November 2022. The optimistic picture is great news for buyers, who will have a wider choice of homes for sale at attractive prices.
Those looking to sell their properties are advised to price competitively to avoid delaying a sale and running the risk of the property becoming ‘stagnant.’ This is when a property has been sitting on the market for over three months without attracting a successful offer. It can be a red flag to potential buyers, who may assume there is a hidden problem.
