Have first-time buyers left it too late to pay lower Stamp Duty? It would appear so.

Bank of England (BoE) Governor Andrew Bailey is confident inflation will fade in 2025, which could mean as many as four interest rate cuts over the year. Bailey told the Financial Times in December that despite recent higher points, he still expected inflation to return to the Bank’s 2.0% target, creating headroom for four 0.25% rate cuts throughout 2025.

Research indicates that homebuying affordability has slightly improved in relation to income.

House prices are expected to stay on a positive trajectory over the course of 2025

Last October, mortgage approvals exceeded expectations and reached the highest level since August 2022.

 Liz Truss’ ‘mini budget’ in September 2022 caused mortgage approvals to plummet. Since then, the housing and mortgage markets have been slowly recovering, with the Bank of England tentatively reducing interest rates in recent months.

2024 was a significant year for the UK property market; Labour’s landslide general election win ended 14 years of Conservative rule in Britain, plus the Bank of England reduced interest rates in August after being held at 5.25% for a year. Here’s a roundup of the housing and mortgage markets at the end of 2024.

and a happy new year

First Time Buyers unaware of available support

Many first-time buyers (FTBs) are not aware of affordable homeownership schemes that could help them get on the property ladder, research has found

'Freshen-upper’ homes most popular

Almost half (49%) of prospective buyers are looking for a ‘freshen-upper’ property, according to research

Transactions expected to surge in early 2025

Property experts predict a surge in transactions early in 2025 ahead of Stamp Duty changes in April.

Mortgage approvals hit a two-year high

Recent data has revealed that, in August, mortgage approvals hit the highest level in two years

A surge in house prices

Nationwide’s House Price Index shows that house prices picked up in September, with the highest annual increase since November 2022

When to buy your first home

Buying your first home is likely to be one of the biggest financial commitments you’ll be making in your life so far. So, how will you know when is the right time to take the leap? Here’s what you need to know about the housing market now.

Lenders speed up mortgage processing

Mortgage lenders are making efforts to speed up their Application to Offer process

What does the Budget mean for housing?

The country’s first female Chancellor, Rachel Reeves, delivered Labour’s first budget for 14 years, raising taxes by £40bn. What does it mean for housing?

Promising house price growth

The UK housing market is showing signs of resilience, as August saw the fastest pace of annual house price growth since December 2022

Conditions slightly improved for FTBs

The average monthly mortgage bill for first-time buyers (FTBs) has reduced over the last year, according to recent figures

Hoping to clear your mortgage?

Most lenders charge an early repayment fee, so it’s essential to know what yours would be. You might work out that, despite the charge, clearing your mortgage is still the right option as you would save more money in interest costs. But if your mortgage is coming to an end soon, you may decide that the early exit fee is not worth it.

Mortgage approvals on the up

Consumers are continuing to rebuild their confidence, with mortgage approvals hitting the highest level in nearly two years.

Has the mortgage guarantee scheme helped?

Recent data has highlighted the effectiveness of the government’s mortgage guarantee scheme.