Nationwide handing customers who have a mortgage £10,725 boost

Nationwide Building Society has issued a major update to customers who have a mortgage. The building society, which is the largest in the UK, has spoken out ahead of Christmas and said the average homeowner could be given a house price rise by £10,725 next year.

Nationwide predicts average house prices will grow between two and four per cent in 2025. For the typical UK home, this could mean an increase of up to £10,725 based on current average values, the building society has gone on to explain.

Robert Gardner, chief economist at Nationwide, said: "Upcoming changes to stamp duty are likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax." From April 1, 2025, the stamp duty threshold for home movers will drop from £250,000 to £125,000.

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First-time buyers will also see changes, with their tax-free threshold reducing from £425,000 to £300,000. Gardner predicts a surge in transactions during the first quarter of 2025, particularly in March, followed by "a corresponding period of weakness in the following three to six months".

Commenting on the research, Toby Leek, president of NAEA Propertymark, said of the findings from the building society: “Propertymark members have reported an increasing interest in property with sales higher than usual, defying the usual winter lull usually seen this time of year.

“Buyers and sellers in England and Northern Ireland are looking to complete their home move before the Stamp Duty changes commence from April 2025, and it’s expected that coupled with slow increases in affordability and wages, this spike of momentum in mortgage approvals and housing market activity will continue.

“After this spike, buyers and sellers with time on their side may then reap the rewards of a slower paced market to ensure each step of their house move is fully considered.”