UK Housing Market Under Pressure

NIL-RATE THRESHOLD (POST-APR 2025)

£125,000

Restored after Conservative-era increase was reversed

BANK OF ENGLAND BASE RATE (2025)

4.25%

Down from 5.25% peak; mortgage rates remain elevated

STAMP DUTY HOLIDAY END

Sep 2021

COVID-era relief that temporarily surged transaction volumes

OBR VERDICT ON CUTS

Revenue-neutral

Medium-term when accounting for induced transaction volumes

Holiday period

Holiday end / 2025 reversal

£250k threshold (Sep 2022)

Policy Timeline

2016-04-01

3% surcharge on second homes introduced

2020-07-08

COVID stamp duty holiday begins (nil rate to £500k)

2021-07-01

Holiday tapers to £250k nil rate

2021-09-30

COVID stamp duty holiday ends

2021-12-16

Bank of England begins rate hiking cycle

2022-09-23

Nil-rate threshold raised to £250k (Truss Budget)

2023-08-03

Base rate peaks at 5.25%

2024-08-01

Bank of England begins cutting rates

2025-04-01

Nil-rate threshold restored to £125k (Labour Budget)

Key Questions