Business news live: House prices fall with ‘market ‘struggling’ on stamp duty change

Some reaction now to bring you from a range property and finance experts.
Let’s start with Alice Haine – personal finance analyst at Bestinvest, who points out the stamp duty change has had a major impact on the market this year.
“UK house prices fell 0.1% in August, while annual growth softened to 2.1% from 2.4% in July, suggesting the market is struggling to find its feet following the hike in stamp duty costs that came into force in April when thresholds reverted to their previous, lower levels,” Ms Haine said.
“While the summer has seen in a surge in homebuying activity, sellers are pricing more realistically in a bid to secure deals at a time when buyers hold the upper hand. Sellers, who initially listed at inflated prices, are increasingly adjusting their asking prices to stay competitive.
“Meanwhile, speculation is mounting over further property tax reforms, just months after the market was forced to absorb the end of the stamp duty break. Chancellor Rachel Reeves is expected to deliver fresh tax hikes at her upcoming fiscal statement amid concerns over the health of the public finances, with property taxation believed to be a target.”

Karl Matchett1 September 2025 08:20

House prices fall 0.1% in August

We’ll start with UK house prices – and the latest Nationwide data shows a 0.1% drop month on month.

It was a surprise drop overall despite known struggles in the market, with the average price of a property in the UK now at £271,079.

However, year on year there is still growth in prices – though it is slowing.

“The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms,” Robert Gardner, Nationwide’s Chief Economist, said.

“House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years.

“Combined with the fact that mortgage costs are more than three times the levels prevailing in the wake of the pandemic, this means that the cost of servicing a mortgage is also a barrier for many. Indeed, an average earner buying the typical first-time buyer property with a 20% deposit faces a monthly mortgage payment equivalent to around 35% of their take-home pay, well above the long run average of 30%.”

Karl Matchett1 September 2025 08:11