Atom bank comments on latest ONS Private Rent and House Price data

21 May 2025

Comment from Richard Harrison, Head of Mortgages at Atom bank

“The Stamp Duty deadline has clearly played a big role in the heightened level of house price growth we have seen in recent months. Housebuyers understandably were likely desperate to get deals completed before the end of the Stamp Duty holiday, with Propertymark noting a sharp jump in the number of prospective buyers registering with estate agents. Vendors have been able to take advantage, and maximise the sale price.

“It would be a mistake to assume that the Stamp Duty regime returning to its previous levels will result in a drop in house prices, however. Lenders have been incredibly active in reducing rates, even before last week’s Base Rate reduction, with Moneyfacts data showing that the average two-year fixed rate is now at its lowest level since September 2022, before the mini-Budget. Coupled with product choice reaching its highest point since October 2007, the range of attractively-priced options will mean plenty of buyers are confident about proceeding with a transaction.

“The ingredients are there for further house price growth this year and beyond, with the risk of freezing out whole groups of aspiring homeowners, such as those with modest deposits or imperfect credit ratings. It’s crucial that lenders ensure these buyers have access to the funding they need to make homeownership achievable, rather than simply a pipedream.”