UK house price growth accelerated as buyers rushed to beat stamp duty deadline
This took the average UK house price in March to £271,000, the Office for National Statistics (ONS) said.
The ending of a stamp duty holiday from April onwards sparked a stampede of home-buyers in the run-up. Stamp duty applies in England and Northern Ireland.
The figures were released as statistics showed UK inflation surged to its highest level for more than a year last month.
Households have been clobbered by a raft of 'awful April' bill increases.
Consumer Prices Index (CPI) inflation reached 3.5% in April, up from 2.6% in March and the highest level since January 2024. This was higher than some economists had been predicting, with a rise of 3.3% having been expected.
Andrew Montlake, chief executive at Coreco mortgage brokers, said: 'With inflation edging up sharply this morning, and mortgage rates likely to follow as expectations of further base rate cuts reduce, this could see average values start to retreat again. If prices do start to ease, they will only go so far as there is a fundamental lack of supply.'
Consumer Price Index (CPI) rose by 3.5% in the 12 months to April 2025, up from 2.6% in March 2025.
Read the full article ➡️ https://t.co/eeQd9l83c7 pic.twitter.com/yzyEv4hdEL
— Office for National Statistics (ONS) (@ONS) May 21, 2025
Jonathan Handford, managing director at estate agent group Fine & Country, said: 'In the months ahead, inflation and still-elevated borrowing costs are likely to weigh on demand, particularly as affordability remains stretched across much of the country.
'That said, a period of softer or stabilising house prices may offer a welcome opportunity for first-time buyers who have been priced out in some areas of the country.'
Sarah Coles, head of personal finance at Hargreaves Lansdown, said the 'rush to seal a deal' before the end of the stamp duty holiday provided some extra impetus for the housing market.
She added: 'This may well slow again in the next set of figures, which is the usual pattern in the aftermath of a stamp duty holiday. However, we're unlikely to see anything too dramatic.
'This period has been marked by robust price growth rather than stellar leaps, so the hangover from the property party is likely to be less painful.
'Lower mortgage rates should also help support prices. However, with buyer numbers likely to have dropped off fairly sharply, there's going to be some room for negotiation.'
Nick Leeming, chairman of estate agent Jackson-Stops, said: 'Encouragingly, across the Jackson-Stops network we are seeing robust activity levels, with demand outpacing supply in popular markets. In April alone, an average of five potential buyers were competing for every new listing, underscoring borrowers' continued commitment.'
Jeremy Leaf, a north London estate agent, said some potential buyers and sellers are 'sitting on their hands', adding: 'The recent cut in mortgage rates has restored some confidence but April's sharp rise in inflation will not help.'
Average house prices increased to £296,000 (6.7% annual growth) in England, £208,000 (3.6%) in Wales, and £186,000 (4.6%) in Scotland, in the 12 months to March, according to the ONS.
The average house price in Northern Ireland was £185,000 in the first quarter of 2025 – a 9.5% annual increase.
Iain McKenzie, chief executive of the Guild of Property Professionals, said: 'We cannot ignore the subdued economic backdrop and ongoing geopolitical uncertainties which will likely ensure a more measured pace of growth for the remainder of the year.'
Richard Harrison, head of mortgages at Atom bank, said: 'Lenders have been incredibly active in reducing rates.'
The ONS also said average UK monthly private rents increased by 7.4%, to £1,335, in the year to April. The annual growth rate eased from 7.7% in March.
Average rents increased to £1,390 per month (7.5% annual growth) in England, £795 (8.7%) in Wales, and £999 (5.1%) in Scotland, in April.
In Northern Ireland, average rents increased to £843 (7.8% annual growth) in the 12 months to February, the report said.
Within England, annual inflation in private rents was highest in the North East region (9.4%) and lowest in Yorkshire and the Humber (4.0%), in April.
Nathan Emerson, chief executive of property professionals' body Propertymark, said: 'Overwhelming demand within the rental sector continues to influence price increases for those who rent. We continue to witness, on average, around 10 applicants for every property available to rent and this is a situation that has broadly remained stagnated across the last five years.
'It is imperative that rental supply rises to meet the challenges of demand.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NBC News
6 hours ago
- NBC News
The data-driven pricing systems many institutions are testing allow entry fees to be lowered when demand is soft — as well as the reverse. Kate Dehler for NBC News Economy Welcome to the zoo. That'll be $47 today — ask again tomorrow. Museums, science centers and other attractions are embracing airline-style dynamic pricing as many struggle with attendance shortfalls.
June 14, 2025, 7:15 AM EDT By Harriet Baskas How much will it cost to visit a museum, zoo or aquarium this summer? The answer, increasingly, is: It depends. John Linehan can rattle off almost two dozen factors that Zoo New England's dynamic pricing contractor, Digonex, uses to recommend what to charge guests. 'It's complicated,' said Linehan, president and CEO of the operator of two zoos in eastern Massachusetts. Before adopting dynamic pricing, the organization was changing prices seasonally and increasing entry rates little by little. 'As we watched that pattern, we were afraid some families were going to get priced out,' he said of the earlier approach. 'I'm a father of four and I know what it is like.' Now, Zoo New England's system provides cheaper rates for tickets purchased far in advance. That, coupled with the zoo's participation in the Mass Cultural Council's discounted admissions program for low-income and working families, 'puts some control back in the consumer's hands,' Linehan said. We charge what we need to make ends meet while delivering on our mission. John Linehan, CEO of Zoo New England The zoo is one of many attractions embracing pricing systems that were earlier pioneered by airlines, ride-hailing apps and theme parks. While these practices allow operators to lower prices when demand is soft, they also enable the reverse, threatening to squeeze consumers who are increasingly trimming their summer travel budgets. Before the pandemic, less than 1% of attractions surveyed by Arival, a tourism market research and events firm, used variable or dynamic pricing. Today, 17% use variable pricing, in which entry fees are adjusted based on predictable factors such as the day of the week or the season, Arival said. And 6% use dynamic pricing, in which historical and real-time data on weather, staffing, demand patterns and more influence rates. The changes come as barely half of U.S. museums, zoos, science centers and similar institutions have fully recovered to their pre-Covid attendance levels, according to the American Alliance of Museums. That has led many to pursue novel ways of filling budget gaps and offsetting cost increases. 'There's a saying: 'No margin, no mission,'' Linehan said, 'and we charge what we need to make ends meet while delivering on our mission.' Entry costs are climbing even at attractions that aren't using price-setting technology. The broad 'admissions' category in the federal government's Consumer Price Index, which includes museum fees alongside sports and concert tickets, climbed 3.9% in May from the year before, well above the annual 2.4% inflation rate. In 2024, the nonprofit Monterey Bay Aquarium raised adult ticket prices from $59.95 to $65 and recently upped its individual membership rate, which includes year-round admission, from $95 to $125. 'Gate admission from ticket sales funds the core operation of the aquarium,' a spokesperson said. While the Denver Art Museum has no plans to test dynamic pricing, it raised admissions fees last fall, three years after a $175 million renovation and a survey of ticket prices elsewhere, a spokesperson said. Entry costs went from $18 to $22 for Colorado residents and from $22 to $27 for out-of-state visitors. Prices rise on weekends and during busy times, to $25 and $30 for in- and out-of-state visitors, respectively. Guests under age 19 always get in free thanks to a sponsored program. Some attractions are doing a daily analysis of their bookings over the next several days or weeks and making adjustments. Douglas Quinby, CEO of Arival Like many attractions, the art museum posts these prices on its website. But many attractions' publicly listed ticket prices are liable to fluctuate. The Seattle Aquarium — which raised its price ranges last summer by about $10 ahead of the opening of a new ocean pavilion — also uses Digonex's algorithmic recommendations. During the week of June 8, for example, the aquarium's online visit planner, which displays the relative ticket availability for each day, offered out-of-state adult admissions as low as $37.95 for dates later in the month and as much as $46.95 for walk-in tickets that week. In addition to booking in advance, there are more than half a dozen other discounts available to certain guests, including seniors and tribal and military members, a spokesperson noted. At many attractions, however, admission fees aren't even provided until a guest enters the specific day and time they want to visit — making it difficult to know that lower prices may be available at another time. 'Some attractions are doing a daily analysis of their bookings over the next several days or weeks and making adjustments' to prices continuously, said Arival CEO Douglas Quinby. Prices might rise quietly on a day when slots are filling up and dip when tickets don't seem to be moving, he said. Digonex, which says it provides automated dynamic pricing services to more than 70 attractions worldwide, offers recommendations as frequently as daily. It's up to clients to decide how and whether to implement them, a spokesperson said. Each algorithm is tailored to organizations' goals and can account for everything from weather to capacity constraints and even Google Analytics search patterns. Data-driven pricing can be 'a financial win for both the public and the museum,' said Elizabeth Merritt, vice president of strategic foresight at the American Alliance of Museums. It can reduce overcrowding, she said, while steering budget-minded guests toward dates that are both cheaper and less busy. But steeper prices during peak periods and for short-notice visits could rankle guests — who may see anything less than a top-notch experience as a rip-off, said Stephen Pratt, a professor at the University of Central Florida's Rosen College of Hospitality Management who studies tourism. 'Because of the higher prices, you want an experience that's really great,' he said, transforming a low-key day at the zoo into a big-ticket, high-stakes outing. 'You've invested this money into family time, into creating memories, and you don't want any service mishaps.' That could raise the risk of blowback at many attractions, especially those grappling with Trump administration cuts this summer. Some historic sites and national parks have already warned that their operations are under pressure. Consumers should expect more price complexity to come. Arival said 16% of attractions ranked implementing dynamic pricing as a top priority for 2025-26. Among large attractions serving at least half a million guests annually, 37% are prioritizing dynamic pricing, up from the 12% that use it currently. For visitors, that could mean hunting harder for cheaper tickets. While many museums are free year-round, others provide lower rates for off-season visits and those booked in advance. It's also common to reduce or waive fees on certain days or hours, and many kids and seniors can often get discounted entry. Here are a few other ways to keep admissions costs low: Ways to save on museum tickets: Ask your local library. Many have museum passes that cardholders can check out. Bundling programs such as CityPass, GetOutPass, Go City and others allow visitors to save money on admissions to a range of attractions. Bank of America's Museums on Us program offers cardholders free entry to many institutions during the first full weekend of each month. For the past decade, Museums for All has been providing free or reduced entry at more 1,400 U.S. museums and attractions to anyone receiving SNAP food assistance benefits. And each summer, the Blue Star Museums program offers museum discounts to actively serving military personnel and their families. 'It may take a bit of research,' said Quinby, 'but it's still possible to find a good deal.' Harriet Baskas Harriet Baskas is an NBC News contributor who writes about travel and the arts.
Telegraph
12 hours ago
- Telegraph
Reeves's jobs bloodbath is only just beginning
Has the UK jobs market taken a turn for the worse? This is the burning question in the wake of employment data released this week. Provisional estimates for May showed payroll jobs falling 109,000 on the month and down 274,000 from a year ago. It's easy to be bamboozled by the jobs data, as there are different measures and they don't all move together. One measure, the Labour Force Survey, has suffered in recent years from a slump in the number of survey participants, so much so even the Bank of England has voiced concern about being unable to follow what's going on with employment. The survey problems are being addressed and the good news is that the Office for National Statistics also uses various sources to compile a measure of workforce jobs, plus there is also reliable data from tax sources. Overall, looking at all of these, the key message is that the UK employment market is slowing down. This is both because of government policy decisions and increased uncertainty about the economic outlook. This deterioration is from a strong position because UK employment has been very high. In March, there were 37.1m people in workforce jobs. This was higher than in December and 304,000 more than a year ago. So, when government ministers this week said that there were more jobs, it was these figures that there were likely referring to. They include 6.15m in the public sector. Out of 20 industry sectors, 12 saw higher jobs in the first quarter, with health and social care up 76,000 jobs. On the face of it, this looks good, but it is only part of the picture. The tax data, which is often seen as reliable as it is not based on surveys, has shown a fall in the number of employees over the last seven months. Although this week's provisional figure of a fall in payrolls for May could be revised, it follows a fall of 55,000 in April and coincides with the largest quarterly fall in vacancies for two years. These fell by 63,000 in the three months to May to 736,000. Also, the unemployment rate rose from 4.4pc to 4.6pc in the three months to May to above its pre-pandemic rate. Three government policies are weighing on the jobs market. First, is the rise in the national insurance rate announced in the autumn Budget and which came into effect in April. This is a tax on jobs and already is having an impact. Its biggest effect will be seen in high-employment, low-wage sectors such as hospitality. Then there are two policies that look set to weigh heavily on small and medium-sized enterprises, who account for 99.8pc of all firms and employ 16.6m people. These are the new employment rights legislation, which adds much uncertainty. For example, a right to flexible working where practical becomes the default. Then there is the increase in the national minimum wage, where an unintended consequence is the distortion it is having on wage differentials in small firms, as well as adding to employment costs. Critical, too, to the jobs outlook is the direction of travel for the economy. The immediate worry is that in the wake of the Chancellor's spending review, we are heading for a repeat of last summer. Then a fear that the Government's first Budget would be tough led to a hit confidence amid talk of a black hole and the talking down of the economy. Now, the Chancellor is more likely to be upbeat but the fear, nonetheless, will be that this autumn's Budget may deliver higher taxes and increased borrowing to fund spending plans. This could weigh on sentiment, denting firms' hiring plans. In the past, the labour market was a lagging indicator, responding with a lag to developments across the economy. Now, because of its flexibility, the jobs market is a coincident indicator, reacting quickly and often driving what is going on across the economy. When the economy turns down, firms can swiftly cut vacancies and not replace roles. There is, though, a positive from the labour market: namely wages are rising by more than inflation. Earnings are rising by 5.1pc in the private sector and by 5.6pc in the public sector. That's an overall annual increase of 5.2pc. Current inflation is 3.5pc. While this has allowed consumer confidence to rise from its recent lows, the disappointing latest retail sales figures and an increase in the savings ratio suggests that even those with the ability to spend are not confident about doing so. The worry has to be that firms, too, will become wary, as is evident in recent surveys. In this case, the slowdown in the labour market that is now evident will continue and more jobs will be shed. Dr Gerard Lyons is chief economist at Netwealth
Times
19 hours ago
- Times
Winter fuel payment U-turn: bad news for single pensioners
About 600,000 single pensioners will lose their winter fuel payment this year in what experts have called the 'latest instance of the singles tax'. After last year scrapping the universal payment, worth up to £300 and previously paid to all pensioner households, the government announced a U-turn that will mean those with incomes below £35,000 will get the allowance this winter. Under the new rules, about 9 million pensioners are expected to get the winter fuel payment, up from 1.5 million last year when it was limited to those who claimed pension credit or certain other benefits. But while the payment is per household, eligibility is based on individual income. That means a couple with a combined income of £69,000 would still get the payment, while a single pensioner earning £35,000 would not. Couples where one partner earns more than £35,000 will get to keep half or two-thirds of the money, because of the way the scheme is administered. The average annual income of a pensioner couple was £49,036 in 2023-24, according to the Office for National Statistics. Between 2021 and 2024 it was highest in the southeast of England, at £59,748, and lowest in the northwest at £41,704. On average, a single female pensioner earned £22,516 and a single male pensioner £25,480. But while the income of a single pensioner is typically about half that of a couple, their energy bill is not. A single-pensioner household spent about £1,352 a year on gas and electricity in 2022-23, according to the Office for National Statistics, while a pensioner couple spent £1,669 — about 23 per cent more. This means that before the winter fuel payment is factored in, a typical single female pensioner spends about 6 per cent of her gross income on energy and a single male pensioner 5.3 per cent, compared with 3.4 per cent for a pensioner couple. Sarah Coles from the wealth manager Hargreaves Lansdown said: 'Just because you live alone, it doesn't mean your bills are halved. This is yet another example of the dreaded singles tax, which we also see with broadband and food bills.' • What is the winter fuel payment and who will get it in 2025? Who gets what Under the latest winter fuel payment rules, couples living together get £100 each. If one partner earns more than £35,000, they will share the £200 payment, but half of it will be recouped from the higher earner by HMRC, the Department for Work and Pensions (DWP) said. This means they end up with £100 between them. The money will either be deducted through a self-assessment tax return, or automatically through pay as you earn (PAYE), for those who are still working, or who have a company pension or annuity. It's not just earnings that affect how much you get — age does too. If one partner in a couple is over 80, they get £200, and their partner £100. If the person aged over 80 is a lower-earner and their partner earns more than £35,000, the couple keep £200 of the £300 allowance. But if they earn more than £35,000, they keep £100. If both partners are over 80 and earn less than £35,000, they receive the full £300. About 2 million pensioners will still be ineligible for the payment. The pension consultancy Lane Clark & Peacock estimates that 660,000 of these are single pensioners. Sir Steve Webb, from the firm, expects the number of ineligible pensioners to grow by another 500,000 within the next five years if the £35,000 threshold is frozen. Other crucial thresholds, including the points at which people start to pay income tax (£12,570) and higher-rate tax (£50,270) have been frozen until at least April 2028. But the government has pledged to maintain the triple lock, which guarantees that the state pension rises each year in line with the higher of 2.5 per cent, wages or the consumer price index measure of inflation. The new state pension for those who reached state pension age after April 2016 is £11,973 a year. If state pension keeps rising but the winter fuel payment threshold does not, more pensioners will find themselves ineligible for the benefit. The pensions minister Torsten Bell said £35,000 was 'a round number, and we do not intend to change it in the years ahead'. He added: 'Further in the future, yes, there will be questions about uprating, which will be considered in the normal way.' Bereaved pensioners who inherit their spouse's pension income are also at risk of losing their winter fuel payment in the future. This is likely to affect those who inherit an annuity or older defined benefit pension, which may include death benefits that pay a reduced income to the surviving spouse. Coles said: 'If the partner with the larger pension dies, half of their pension income might go to their spouse. They might then have over £35,000 in pension income and so lose their winter fuel allowance, despite being worse off overall. 'It's easy to assume that inheriting half of someone's pension will mean you can cover your costs, but your bills won't halve when you're living alone, so you need to have a financial plan in place for this phase of retirement. And that plan needs to factor in the loss of your winter fuel payment too.' Should you claim pension credit? The DWP has estimated that about 65 per cent of those entitled to pension credit claimed it in 2022-23, so there could still be tens of thousands of pensioners missing out on what can be a useful benefit. Pension credit, paid to about 1.36 million households, aims to help cover the living costs for those who are over state pension age and have a low income, by topping up their state pension to £227.10 a week for a single person. It also entitles people to other benefits such as the warm homes discount of £150, which is taken off your electricity bill, or the cold weather payment, worth £25 and paid if the average temperature in your area is recorded as, or forecast to be, 0C or below over seven consecutive days. You can normally claim pension credit if you have a single income of less than £227.10 a week or a joint income of less than £346.60, based on income from the state and personal pensions plus any earnings. Pension credit will then normally top up your income to this threshold. For every £500 you have in savings above £10,000, you lose £1 of your entitlement to pension credit.
