In the City Is the UK Housing Market Running Out of Steam?
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Jul 3, 2025 In this insightful discussion, financial expert Marcus Ashworth, a Bloomberg Opinion columnist, sheds light on the troubling trends within the UK housing market. He reveals how rising transaction taxes and high borrowing costs have shocked buyers, leading to the lowest house price growth in two years. The conversation uncovers the plight of the luxury sector in London and critiques government policies that are fueling market stagnation. Ashworth emphasizes the need for a reevaluation of current practices to navigate these economic challenges.
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Stamp Duty Hikes Freeze Market
- The UK's April stamp duty hike drastically reduced housing transactions, stalling the market and economy.
- High taxes make downsizing costly, freezing much of the market and affecting related industries.
London Prime Market Collapse
- London's prime property market is in decline, with prices dropping over 20% and massive discounts required to sell.
- Non-domiciled owners are selling off due to tax changes, worsening demand and prices.
Tax Rises Pressure Interest Rates
- Government's tax increases to cover welfare spending may force Bank of England to cut interest rates more aggressively.
- Mortgage rates might improve, potentially supporting broader housing market demand.