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HOUSE sales have slowed down after the rush to beat higher stamp duty charges in England and Northern Ireland at the end of March, although it’s hoped that new changes to mortgage affordability assessments may boost buying power in the months to come.

- By Deborah Stone

The latest Zoopla House Price Index, which measures the change in UK house prices, reveals that year-on-year house price growth is down to 1.6 per cent compared to 1.9 per cent at the end of 2024.

However, prices have increased more in affordable areas and that could be the case elsewhere thanks to the decision to allow lenders to reduce mortgage “stress tests”.

This would increase borrowers’ buying power. For instance, applicants for a 4.5 per cent mortgage with monthly repayments of £1,020 would typically have to prove they could afford £1,550 a month — an 8.5 per cent stress test rate - but this would fall to £1,275 if lenders move to 6.5 per cent stress rates, which was typical pre-2022.