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Published: 09 April 2025

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A prominent housing market analyst has suggested President Donald Trump’s tariffs have a silver lining after all.

In response to the latest house price index Tom Bill, head of UK residential research at Knight Frank, says: “As buyers adapt to higher rates of stamp duty, the positive news is that US trade tariffs announced last week have put downwards pressure on borrowing costs as markets price in an economic slowdown. 

“The Bank of England is now expected to cut rates three times this year rather than twice. The risk is that tariffs ultimately prove to be inflationary and the spillover effects mean upwards pressure on mortgage costs in the UK. For now, the spring market feels steady although the prospect of a tax-raising autumn Budget will throw more uncertainty into the mix later this year.”

Bill’s comments came following data from the Halifax showing that UK house prices fell by 0.5% in March, a drop of £1,575. 

Despite this, the annual growth rate remained steady at 2.8%, with the typical UK property now valued at £296,699.

Amanda Bryden, head of mortgages at the lender, says: “House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.

“Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.

“However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year.”

High profile agents have generally reacted calmly to the dip in prices – although do not necessarily agree that more rate cuts are on the horizon.

Jeremy Leaf, north London agent and a former RICS residential chairman, comments: “Although the small reduction in house prices noted last month has continued, activity still held up relatively well as the figures will not cover transactions which completed before the deadline to take advantage of the stamp duty concession. There’s no doubt that many purchases were brought forward as a result so we might have expected to see more impact in the data.

“Buyers and sellers who missed out on the stamp duty savings had the choice to stay put, keep to previously-agreed terms and continue with their move or try to re-negotiate in an attempt to find some middle ground. The last option has proved the most popular in our offices. However, worries about short-and-longer term economic prospects both here and abroad, have been driving that decision-making (or lack of it) over the past few weeks at least.”

And Jason Tebb, president of OnTheMarket, adds:”The housing market continues to shake off external economic concerns demonstrating remarkable resilience, with good levels of activity and interest, particularly ahead of the end of the stamp duty concession. Recent base rate cuts have done much to provide a boost to confidence and activity in the market. With the stamp duty savings now behind us, further rate reductions from the Bank of England would be timely, providing much-needed impetus as the year progresses.

“The relative steadiness of house prices suggests that affordability is keeping a lid on values with buyers not prepared to pay inflated amounts. Sellers keen to take advantage of what is traditionally a busy spring market should seek advice from an experienced agent to take into account local market nuances and price accordingly if they wish to achieve a timely sale.”

Nathan Emerson, chief executive of Propertymark, remarks: “This house price reduction will be a huge disappointment to many sellers hoping to make gains on a house sale to climb up the housing ladder, but it could also be an opportunity for aspiring homeowners to take advantage of the slight reduction in house prices and take their first step, or next step, onto the housing ladder.  

“Hopefully this month on month dip is only temporary. The spring and summer months normally spur on a flurry in housing activity, especially at a time when there are many competitive mortgage deals out there right now as a result of the reduction in interest rates last year. 

“However, with housing playing a vital role in the UK economy, international events could jeopardise the Bank of England’s target of a 2% inflation rate, which may thwart their ambitions to reduce interest rates further. The housing market must remain stable ahead of the Bank of England’s next decision on interest rates in May.”

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Published: 26 March 2025

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Chancellor Rachel Reeves will deliver her first Spring Statement today and there are hopes for much-needed housing market support.

Reeves is facing the pressure of low economic growth and high inflation and while no major tax changes are expected, her policy plans could hit the market.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “With housing playing a key part in the UK Government’s plan for change, the Spring Statement must ensure government policy protects the delivery of more social and affordable housing and local authorities have the resources they need across planning, enforcement and infrastructure.

“Policymakers must also fully understand the need to reform housing benefits so they reflect real rental costs, and the UK Government must continue to target resources to tackle the cladding crisis and improve building safety to help boost economic growth.”

With Stamp Duty set to increase from 31 March, reverting to pre-September 2022 thresholds, Jonathan Handford, interim managing director of Fine & Country is urging the Government to reconsider.

He said: “As one of the few tools available to stimulate the property market, he believes Stamp Duty should be reduced rather than increased.

“At a time when borrowing costs remain high, the additional burden of Stamp Duty acts as a deterrent, discouraging homeowners from moving.

“For many would-be movers, particularly families looking to upsize or older homeowners considering downsizing – the upfront tax cost is simply prohibitive.

“Reducing Stamp Duty would not only make it more affordable to move, but the resultant increase in transaction volume would likely offset any shortfall in per-transaction revenue for the Treasury. More importantly, it would deliver a significant boost to the broader economy.”

He is also calling for the Government to reintroduce a modernised Help to Buy Scheme.

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Published: 26 March 2025

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Vida Homeloans, a specialist lender, has made a number of enhancements to its product ranges, including reductions to its Residential products by up to 0.30% and Buy-to-Let products by up to 0.54%.

They have also announced a refreshed Fee Saver range with new products across Residential and Buy-to-Let, available for standard, HMO/MUB, and Expat cases.  Additionally, they have decreased the minimum loan size to £150k for Buy-to-Let Limited Editions, allowing landlord customers more options for lower-value properties.

Ross Williams, head of mortgage product management at Vida, comments: ‘We’ve seen swap rates in the market drop over the course of January. We always endeavour to pass these savings on to our potential customers through rate reductions across our ranges.’  

Vida has also expanded its list of accepted Scottish postcodes, now including 14 additional postal codes.

Meanwhile United Trust Bank mortgages has announced significant rate reductions across its Buy-to-Let mortgage product range with reductions of up to 176bps.

The specialist lender is particularly keen to attract more HMO, MUB and holiday let business with 5-year fixed rates for single dwelling AST products starting from just 4.99% and HMOs/MUBs from 5.29%.

Highlights include: 

Standard (single dwellings on an AST)

•                  2yr Fixed Rates from 5.69%

•                  5yr Fixed Rates from 4.99%

Specialist (HMO and MUB up to 10 rooms/units)

•                  2yr Fixed Rates from 5.69%

•                  5yr Fixed Rates from 5.29%

Non-Standard (Holiday Lets)

•                  2yr Fixed Rates from 5.89%

•                  5yr Fixed Rates from 5.94%

UTB mortgage director Buster Tolfree says: “It has been a bumpy couple of years for landlords and BTL brokers with the sector having to deal with higher interest rates, tougher EPC requirements and uncertainty created by the Renters Rights Bill. However, in our experience landlords are a resilient bunch and with good quality rental property still in short supply, it’s a sector we’re committed to supporting for the long term. As a prominent lender in the specialist BTL space, we feel obliged to lead from the front.”

And Principality Building Society is implementing reductions across residential and Joint Borrower Sole Proprietor (JBSP) mortgages, with cuts of up to 0.29% on residential products and 0.35% on JBSP mortgages.

But selected rates will increase, including a 0.02% rise on some two-year fixed products.

And finally Roma Finance has launched RomaPRO, a buy-to-let product aimed at property investors and developers. 

RomaPRO, suited for special purpose vehicles, offers loan sizes from £75,000 up to £2m.  The product targets transitions from development projects, refinancing, or new acquisitions. 

Key features of RomaPRO include commercial rates linked to the Bank of England base rate, top-slicing options, and suitability for HMOs, MUBs, holiday lets, and serviced accommodation.

Now available on Brickflow, a digital marketplace for property finance, this partnership allows brokers and borrowers to compare Roma’s offerings with other lenders. 

The integration with Brickflow also enhances the process for brokers by simplifying funding proposals and opportunities to expand their services.

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Published: 06 March 2025

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