Flooding puts 6.3 million homes at risk
One in four properties in England are at risk of flooding, with 4.6 million homes vulnerable to surface water flooding. Climate change is expected to worsen the situation, potentially putting 8 million homes at risk by 2050. It’s essential to take steps now to protect your property, including reviewing your home insurance coverage.
Residential Property Review – May 2025
UK house prices are forecast to rise by 3.5% in 2025 as rate cuts support demand. March sales surged ahead of Stamp Duty changes. Meanwhile, buy-to-let investors increasingly favour the north, drawn by lower costs and stronger rental yields.
Stamp Duty changes – tune in
From 1 April 2025, Stamp Duty Land Tax (SDLT) rates will revert to pre-September 2022 levels. First-time buyers will start paying SDLT on properties over £300,000, while all other buyers will pay on homes valued above £125,000. It’s important for buyers to factor in these changes when planning a property purchase.
Spring tips for UK homebuyers
Spring brings more listings and competitive pricing, with 70% of homes listed in February and March completing quickly. Buyers benefit from stable mortgage rates (4.75%) and a wider selection of homes, averaging 51 days to sell. Early preparation, including securing a mortgage agreement, is essential. Researching local prices ensures informed decisions in a competitive market.
Spring Statement 2025
The Chancellor Rachel Reeves has cut the welfare budget further and boosted defence spending in a Spring Statement aimed at kick-starting the faltering economy. Meanwhile, the OBR – the government’s financial watchdog – halved its growth forecast for this year to 1%.
Now here’s a golden anniversary worth celebrating!
Celebrating the 50th anniversary of the Sex Discrimination Act, which enabled women to secure mortgages independently. The number of primary female mortgage applicants has increased recently, however the gender pay gap still presents a home ownership barrier to women.
Could ‘right-sizing’ help the housing market?
Many UK homes have unused bedrooms, limiting availability for first-time buyers. ‘Right-sizing’—moving to a more suitable property—could help address housing shortages by freeing up larger homes. However, emotional attachment and moving stress are key barriers to this.
A reminder of recent property tax changes
Autumn Budget announcements included an increased surcharge on second homes (5%), adjusted Stamp Duty for first-time buyers, and increased Capital Gains Tax rates for investors. Additionally, £500m was allocated for affordable housing and supporting small housebuilders.
In the news – Home Finance
UK homeowners saw average property value gains of £80,000 in 20 years. Storm damage affected 20% of homes from 2020-2024, highlighting the need for insurance. Equity release grew in 2024, with £615m withdrawn by homeowners over 50 in Q3.
Economic Review
Our latest Economic Review looking back on April includes – the UK economy returns to growth, inflation eases, strong rise in retail sales, jobs market continues to weaken and the markets at month end.