UK house prices continue to rise despite stamp duty changes

In March 2025, the UK housing market experienced significant activity as house prices rose for the seventh consecutive month. This boost was largely attributed to buyers rushing to finalize their transactions prior to the increase in stamp duty thresholds that was set to take effect at the end of the month. According to data released by Nationwide, the average price of a home in the UK reached £271,316, marking a 3.9 percent increase compared to the same month the previous year, while remaining unchanged from February's figures. However, the housing market faced a slowdown as the month progressed. The impending changes to stamp duty created uncertainty among potential buyers, causing a tapering off in demand. Many prospective homeowners were discouraged from making offers as they were aware that completing any transactions prior to the deadline would be complicated, leading to a flat month-on-month price performance. The situation has brought attention to the impact of government regulations on the housing market. While the initial rush was beneficial for sellers, the looming deadline and subsequent confusion among buyers highlighted the delicate balance in property transactions. Homebuyers became increasingly cautious, and this trend may result in an eventual correction in the market dynamics if the demand continues to drop. Looking ahead, the implications of these changes in stamp duty could lead to longer-term effects on house prices and buyer behavior. Industry experts will be closely monitoring how the market adjusts post-implementation of the new duty thresholds and whether activity levels can be sustained in the coming months without external incentives to drive buyer interest.