UK House Prices Fall 0.6% Amid Stamp Duty Changes

UK house prices fell by 0.6% in April, marking the steepest monthly decline in nearly two years, following the expiration of temporary stamp duty relief. The reduction in stamp duty thresholds on April 1 led to a rush of transactions in March, as buyers hurried to avoid higher tax liabilities. First-time buyers now face stamp duty on properties above £300,000, down from the previous £425,000, while the threshold for other buyers dropped from £250,000 to £125,000. Experts note that this policy shift has temporarily softened the housing market, with annual house price growth slowing to 3.4% in April from 3.9% in March. Analysts and economists expect the market to remain subdued in the short term, but anticipate a gradual recovery as the summer progresses, supported by relatively favorable conditions for buyers. The changes illustrate how tax policies can significantly influence housing market activity and sentiment.