UK House Prices Surge Amid Tax Deadline Pressure

UK house prices rose by 0.7% in January, exceeding forecasts, as buyers hurried transactions before property tax hikes in April. Demand is fueled by tax incentives and favorable mortgage loans. The housing market shows resilience despite economic challenges and government initiatives to alleviate housing shortages.

In a surprising turn, UK house prices rose by 0.7% last month, surpassing economists' forecasts. The increase was primarily driven by a rush of buyers aiming to finalize transactions before a scheduled property tax increase at the start of April, as stated by mortgage lender Halifax.

The housing market demonstrated robust activity, with early indicators signaling continued demand in the upcoming months. Contributing to this trend is the looming expiry of temporary tax incentives, particularly benefiting first-time homebuyers, set to end next month.

Despite the market's resilience, challenges persist, notably the scarcity of available properties. The government, led by Prime Minister Keir Starmer, is keen on accelerating home construction to counteract these shortages, amid a backdrop of economic uncertainties heightened by expected inflation spikes.

(With inputs from agencies.)