Stamp Duty Change Expected To Spark Homebuying Rush
Home sales will "jump" at the beginning of next year as people try to buy before the rise in stamp duty, one of the UK's biggest lenders has predicted.
From March 2025, changes introduced in Wednesday's Budget mean many will pay the tax when they would not have done previously.
Nationwide said this would affect one-fifth of first-time buyers.
However, the impact of these changes is not expected to be as big as previous ones because high interest rates are still putting off buyers.
"Affordability is also still relatively stretched at present as a result of the higher interest rate environment, which is acting to dampen housing market activity more generally," said chief economist Robert Gardner.
He added that the changes, which only apply to England and Northern Ireland, had been expected, meaning they will likely have less effect than changes in 2020 and 2016.
He predicted that the boost to activity will be followed by a slump over the next six months, based on what happened after previous stamp duty changes.
Nationwide also said the impact would be less in areas where house prices are cheaper, such as Northern Ireland and northern England, and more where homes are pricier, such as London and south-east England.