So what's behind the price rises? Savills believes Stamp Duty disruption is partly to blame. As of April 2025, home buyers in England began paying more Stamp Duty when key thresholds were reduced. For example, before the changes, those buying a home priced up to £250,000 (or £425,000 for first-time buyers) paid 0% Stamp Duty.

After April 1 2025, only those spending up to £125,000 (or £300,000 for first-time buyers) will avoid the tax. Now, anyone buying a home costing between £125,001 and £250,000 has to pay 2% tax. As a result, house transactions boomed in early 2025, as buyers rushed to beat the deadline. Following this, completed transactions dropped and, in May, were 16% lower than the 2017-19 average for the month.

Savills also believes that supply and demand will play a role in house prices. The firm's experts think high supply will lead to limited price growth, but they expect prices to follow a positive trend over the coming years.

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