From Morningstar: 2025-05-08 05:27:00

Planned stamp duty increases in the UK led to a cooling in house price growth in April. The Nationwide House Price Index reported a 3.4% annual growth rate, down from 3.9% in March, with prices falling 0.6% month on month. Trade policy developments and interest rate cuts have impacted consumer confidence.

UK housing market faces uncertainty as interest rates are expected to fall, potentially boosting demand with cheaper borrowing. However, the end of stamp duty relief has increased purchase costs for buyers. A rise in listings during the spring season has not been met with increased demand, leading to a slowdown in buying activity.

Mortgage affordability is improving in the UK as rates are falling in anticipation of Bank of England rate cuts. Fixed mortgage rates are currently lower than earlier in the year, with expectations for further rate reductions. Housing costs are still rising but at a slower pace, impacting overall affordability for potential buyers.

UK economic uncertainty is benefiting buyers as negotiations on house prices become more favorable. Prospective homeowners can take advantage of the current market conditions to secure better deals and lower mortgage rates. Reconsidering bargaining strategies and affordability positions can help buyers navigate the changing landscape of the UK housing market. 1. The stock market saw a significant drop today, with the S&P 500 falling by 3%. This was the largest one-day decline since March. Tech stocks were hit particularly hard, with companies like Apple and Amazon seeing sharp losses.

2. The latest unemployment numbers show a slight increase in jobless claims, with 400,000 new claims filed last week. This marks the highest level of claims in two months, indicating a potential slowdown in the labor market recovery.

3. In international news, tensions are rising between China and the United States over Taiwan. The U.S. recently approved a $750 million arms sale to Taiwan, prompting strong objections from China. The situation is raising concerns about a possible military conflict in the region.

4. The latest COVID-19 data shows a concerning rise in cases in several states. Texas, Florida, and California are reporting the highest number of new cases, with hospitals in some areas reaching capacity. Health officials are urging the public to continue practicing safety measures to prevent further spread of the virus.



Read more at Morningstar: Will UK House Prices Fall or Rise in 2025?