Response to ONS UK House Price Index from Atom bank

16 July 2025

Chris Storey, Chief Commercial Officer, Atom bank

“The impact of the end of the Stamp Duty holiday is clear to see - while house prices continue to rise on an annual basis, the rate is substantially lower than we had become used to at the start of the year. With estate agents seeing drops in new buyer registrations, and Rightmove reporting vendors dropping asking prices in order to stand out amid decade-high competition, further house price growth may be subdued, in the short-term at least.

“Reductions in borrowing costs are making would-be purchasers more confident. Data from Moneyfacts shows that two-year fixed rates, for example, are now at the lowest levels since September 2022, while borrowers have an exceptional level of choice, with the second highest number of mortgage products available since 2007. That combination of keen pricing and wider availability is opening up the market to more buyers, and that sort of activity may push prices higher in the months ahead, particularly if - as expected - we see at least one more Base Rate cut, despite the rate of inflation remaining higher than expected.

“Further house price growth threatens to make life hard for those who have been unable to save a sizeable deposit. Questions remain over the effectiveness of measures like the Lifetime ISA, so the onus is on lenders to deliver flexible, common sense lending which keeps housing accessible. The changes to the high loan-to-income limits confirmed in yesterday’s Leeds Reforms, as well as the introduction of a permanent mortgage guarantee scheme should make that easier for lenders to do - it’s now all a question of attitude. ”