Major buy-to-let lender Shawbrook claims first-time buyers racing to beat a Stamp Duty deadline are pushing up house prices.

Emma Cox, who is MD at Shawbrook, warns though that it could be a temporary upturn in prices and may be followed by a slump.

For first-time buyers, the threshold for Stamp Duty to be payable will drop from £425,000 to £300,000 at the end of March next year.

“Sales activity, in part driven by first-time buyers trying to secure purchases before the end of stamp duty relief, has continued to drive house prices upwards,” Cox says.

A slump in activity once the relief comes to an end could be seen.”

“This has counteracted the usual winter slowdown; though the impact may be temporary and a slump in activity once the relief comes to an end could be seen in the longer term.”

Barrier

And she also warns the Government that “removing help for first-time buyers – who make up the majority of new build purchases – could act as a significant barrier to building 1.5 million new homes”.

And rental demand may be pushed up even further, she says, with property investors taking the opportunity to add to their portfolios.

Research from Lomond showed that the looming deadline for Stamp Duty relief is set to encourage potential buyers to continue their search during the festive period.

Its house hunting survey found that 93% were hopeful of completing their planned purchase by 31 March.

And UK Finance, the organisation that represents mortgage lenders, issued an unusually upbeat forecast for next year, saying that lower interest rates and easing ‘cost of living’ pressures will lead to greater mortgage affordability and buying activity during 2025.