House sales set to surge

House sales in the UK are projected to increase significantly over the next four months, driven by impending tax breaks set to expire in April 2025, according to Zoopla. This comes after Chancellor Rachel Reeves announced that the zero-tax stamp duty threshold will decrease to £125,000 from £250,000 - and from £425,000 to £300,000 for first-time buyers. Zoopla, which reported a 1.5% rise in prices over the past year, expects a further 2.5% increase next year and a 5% jump in transactions. Zoopla forecasts 1.1m sales in 2024, a 10% rise from 2023, influenced by pent-up demand and changing demographics. However, the north-south divide in price growth is expected to persist due to ongoing affordability pressures in London and the southeast. Richard Donnell, Zoopla's executive director, noted: "Higher income growth and lower mortgage rates have helped reset housing affordability faster than many expected."

The Guardian (29/11/2024)