Home buyers are scrambling to dodge April’s punishing stamp duty hike, fresh figures from Zoopla reveal.
According to Zoopla the average home now costs £267,700, an increase of £5,200 last year—a huge turnaround from 2023’s property slump.
Zoopla is predicting a house price increase of 2.5% in 2025, as demand surges and confidence returns to the market. This is on top of the average increase of 2% across 2024, the fastest annual growth since April 2023.
Sales have skyrocketed by 12% compared to this time last year and housing market inquiries rose up by 13%.
The number of homes for sale has also jumped by 10%, in a major boost for the property sector.
Malcolm Prescott, managing director of Webbers Estate Agents, said: “January has started very positively. Mortgage rates have stabilised, and people are feeling more confident. The market is definitely picking up.”
What are the changes to Stamp Duty?
A major shake-up in stamp duty rules is set to hit buyers hard from April—and it’s sparked a mad rush to complete deals before the taxman cashes in.
Currently, first-time buyers pay zero stamp duty on properties up to £425,000. But from April 1, this will be slashed to £300,000—meaning those purchasing a £425,000 home will suddenly face a £6,205 tax bill.
Home movers aren’t safe either. The threshold for stamp duty is set to plummet from £250,000 to £125,000, leaving many facing an extra bill of up to £2,500.
Estate agents say those already house-hunting are racing against time to complete their purchases before the tax hike kicks in.
Toby Leek, president of Propertymark, told This is Money: “We’re seeing frantic activity as buyers rush to avoid paying thousands more in tax. The impact is huge.”
Richard Donnell, executive director at Zoopla, dismissed fears over the stamp duty hike, adding: “Three in five first-time buyers will still pay nothing, and the extra costs remain manageable. It won’t crash the market—it’ll just keep prices in check.”
