Mortgage approvals in January 2025 increased by 18% compared to January 2024, with 66,200 approvals recorded.
This surge is largely attributed to buyers rushing to secure properties before the stamp duty nil-rate threshold reverts from £250,000 to £125,000 in April.
While this urgency may lead to a quieter market post-April, broader indicators suggest a modest rise in demand and transactional activity, even for sales unlikely to be completed before the deadline.
The latest RICS UK Residential Market Survey highlights an increase in market appraisals compared to the previous year, reinforcing expectations of a steady, albeit cautious, rise in transactions.
However, while the removal of stamp duty incentives introduces additional costs, economic uncertainties related to inflation and mortgage rate fluctuations may temper buyer enthusiasm as the year progresses.
