Stamp duty changes and banks offering bigger mortgages have driven the high
The nation’s property market was the strongest it has been since 2022 in the first half of this year, fresh analysis shows.
Property transactions and mortgage approvals hit a three-year high in the first half of the year, analysis by estate agent comparison website GetAgent reveals.
The figures were boosted by a hike in stamp duty in April, which led property buyers to rush to complete before the deadline.Â
However, GetAgent said the numbers of new mortgages approved had ‘remained consistently strong’ after that, ‘suggesting plenty of buyer appetite to drive transactions through the remainder of the year’.
This was in part because of mortgage lenders loosening their affordability rules, a change which has benefited first-time buyers. Â
An average of 63,866 mortgages were approved each month between January and June, its analysis of HM Revenue and Customs and Bank of England data showed.Â
Market moving: The number of properties sold and mortgages agreed rose in the first half of 2025, but this was heavily impacted by stamp duty changes
In addition, 103,917 property transactions completed each month between January and June, which GetAgent said was the strongest level of activity seen in the property market since 2022.Â
This fell towards the end of the period, with 93,530 transactions completed in June according to HMRC.Â
Colby Short, chief executive of GetAgent, said:Â ‘It’s clear many remain confident in the market, with about half of the introductions we facilitate proceeding to list within six months.’
Buyers had been enjoying reduced stamp duty bills since 2022 but the tax-free allowances and rates reverted on April 1 as Chancellor Rachel Reeves failed to extend the tax holiday in her inaugural Budget.
The so-called ‘nil-rate threshold’ – at which stamp duty starts to be charged – were lowered from £250,000 to £125,000.
First-time buyers could previously buy a £425,000 property without paying stamp duty but this has been lowered to £300,000.
Justin Moy, of Essex-based mortgage brokers, said: ‘Much of the increased activity would have been driven by the desire to buy before the stamp duty changes in April, with both first time buyers and homemakers looking to cash in before their cost to move increased substantially.
‘Whilst activity has calmed down over the last few months, we are starting to see renewed enquiries fuelled by improved mortgage lender affordability.’
Mortgage affordability boost Â
A handful of major lenders have relaxed their mortgage affordability rules in recent months, which means homebuyers can now potentially borrow tens of thousands of pounds more.
HSBC’s relaxation of affordability rules, for example, means the average first time buyer will be able to borrow some £39,000 more.
Moy also said mortgage rates are reasonably settled for the rest of the year, so anyone holding out for a better deal will start to make moves, which will spark a steady uptick in mortgage approvals and sales over the coming months.
The average two-year fixed-rate deal was 5 per cent on 8 August, while an average five-year deal was 5.01 per cent, according to rate scrutineer Moneyfacts.
This comes as house prices in July had their biggest monthly rise of the year so far, according to Halifax, as mortgage rates keep falling and banks offer bigger home loans.
The mortgage lender said the average price went up by 0.4 per cent in the month of July, making the typical home worth £298,237. This is compared to £297,157 in June.
Best mortgage rates and how to find them
Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs.
That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.
Quick mortgage finder links with This is Money’s partner L&C
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To help our readers find the best mortgage, This is Money has partnered with the UK’s leading fee-free broker L&C.
This is Money and L&C’s mortgage calculator can let you compare deals to see which ones suit your home’s value and level of deposit.
You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.
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Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.Â
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Property market ‘strongest in three years’ in first half of 2025