Atom bank comments on ONS Private Rent and House Price data

16 April 2025

Richard Harrison, Head of Mortgages at Atom bank, comments:

“House price inflation has been buoyed in recent months by buyers desperately scrambling to get completions over the line before the stamp duty deadline. Figures from Propertymark show that the average number of viewings per available property rose in February to its highest level since last summer, as would-be purchasers looked to get the ball rolling on a transaction. That competition has put vendors in a good position to hike their asking price, as reflected in the ONS data.

“While the stamp duty deadline has now passed, I’m not sure we should expect to see much of an impact on house prices, particularly given the prospect of lower mortgage rates to come. Ongoing market turmoil has had an impact on base rate expectations, with some suggestions there could be as many as four further cuts this year, while today’s lower than expected inflation data strengthens the case for cuts to be made soon. We are already seeing lenders cutting rates, so even without the allure of a lower stamp duty bill, would-be buyers may feel more confident in pushing ahead with a purchase.

“Given the speed at which house prices have accelerated, a squeeze on household budgets and the lack of a replacement for schemes like Help to Buy, it’s more important than ever that buyers can access funding at high LTVs. The lack of an enormous deposit should not be an insurmountable barrier for those more than able to service a mortgage.”