Electric cars used to be the “cheap to run” option. No road tax, no fuel duty, and lower servicing costs. That landscape is changing, and the latest government plans make that crystal clear. From 2025 and again in 2028, owners of electric and plug-in hybrid cars will start paying two new forms of motoring tax: road tax (VED) and a new mileage-based EV charge.

For people moving home or investing in property, this matters more than you might think. Cars influence commuting costs, charging habits, energy usage, and even what type of buyer your home attracts.

Here’s what’s changing — and why it matters in the housing market.

Road Tax Returns for Electric Cars (From April 2025)

Electric cars will no longer be exempt. From April 2025:

Most EVs will pay the standard VED rate, currently £180 per year. EVs originally costing over £40,000 will also pay the expensive car supplement, adding another £390 per year for five years.

This puts EVs broadly in line with petrol and diesel vehicles and removes the long-standing incentive of “zero road tax”.

For buyers, especially those comparing running costs between areas, this is an extra line in the budget.

Mileage-Based EV Tax (From April 2028)

The November 2025 Budget introduces a second layer: an annual charge based on how many miles you drive.

The government plans to apply a per-mile rate of around half the fuel duty equivalent. For most drivers, this is expected to be in the region of 4–5p per mile.

High-mileage EV owners will feel this most. A typical 10,000-mile-a-year driver could see an additional £400–£500 added to their annual running costs.

Crucially:

EV owners will pay both VED and the mileage charge from 2028.

Why This Matters for Buyers and Sellers

Running costs affect affordability

Mortgage rates, energy prices and general living costs already influence buyer behaviour. With the cost of running an EV rising, households will be more conscious about where they live and how far they commute.

Homes within walking distance of schools, shops or major transport links may become even more appealing.

Charging matters more than ever

If running costs rise, buyers will want convenience.

Properties with:

off-street parking dedicated EV chargers solar panels feeding the charger battery storage

will continue to attract a premium. Convenience and low-cost home charging will be more valuable than the old “free road tax” attraction.

Buyers may ask different questions

Instead of “Is there a charger?”, expect more buyers to ask:

“What’s the electricity tariff like here?” “How much will it cost to charge overnight?” “Is there a place to charge if the drive is occupied?”

These features will increasingly influence offers.

Why It Matters for Landlords

Tenants with EVs will expect charging provision

Rental demand is shifting. More tenants drive EVs every year, and from 2028, with mileage charges coming in, home charging becomes even more important because it keeps running costs low.

Homes without off-street parking risk falling behind.

Smart charging adds value

Landlords who install:

wall-box chargers solar panels battery storage tariff-optimised smart charging

will attract higher-quality tenants and reduce voids.

Opportunity for higher rents

Properties offering low running costs often command better rent. As more motoring expenses creep back in, tenants will value anything that cuts their monthly bills — especially home charging.

Impact on the Wider Housing Market

The new tax system won’t transform the market overnight, but it will subtly shift priorities:

Urban homes become stronger for low-mileage households. Rural and commuter-belt homes may factor in higher motoring costs. Properties with drives and garages will gain even more importance. Buyers are less likely to pay a premium for an EV unless the home supports low-cost charging.

The core message?

Convenience and running-cost efficiency will drive buyer decisions more than the type of car they own.

Final Thoughts

Electric vehicles are still cheaper to run than petrol or diesel cars, but the gap is narrowing. As these taxes come in, the way people think about motoring — and the homes that support it — will evolve.

If you’re planning to sell or rent out a property, now is the time to think about:

driveway access charging installation energy efficiency smart meter or solar potential

These features can help your property stand out and maintain value.

If you’d like help positioning your home in the market — or you want to know what upgrades could increase your sale price — feel free to get in touch. I’m always happy to offer guidance.

According to recent data from TwentyEA, last week was the busiest week for house sales in the UK since May 2022. For homeowners in Staffordshire, this is a major signal that confidence has returned to the property market — and it could be the perfect time to make your move.

Why Now?

Over the past 18 months, rising interest rates, inflation pressures, and uncertainty led many buyers and sellers to hit pause. But the tide is turning.

Mortgage rates have stabilised Demand from buyers is growing again More homes are going under offer quickly — especially well-presented, well-priced properties

At Open House Staffordshire, we’ve seen a surge in enquiries, viewings, and offers across the board. And while national statistics confirm the trend, we’re seeing it unfold right here on the ground in Stafford, Cannock, Gnosall, Rugeley, and beyond.

What This Means if You’re Thinking of Selling

If you’ve been sitting on the fence, waiting for the “right time” — this could be it. More buyers are actively searching, competition is rising, and the window of opportunity to secure a great sale before the summer holidays is wide open.

We’re Ready When You Are

At Open House, we offer a hands-on, personal service where you deal with me directly — no call centres, no hand-offs, just straight-talking advice and professional marketing that works.

Free, no-obligation valuation Professional photography, 3D tours, and social media marketing included as standard Low, fixed fees and a 90%+ success rate

Let’s Talk

Want to know what your home could be worth in this fast-moving market?

Call me on 01785 256100 or message us today to arrange a valuation and chat through your options. Even if you’re just curious — I’m here to help.

The UK housing market has entered 2025 with notable vigor, reflecting a continuation of the positive trends observed throughout 2024. Recent data indicates a 12% year-on-year increase in new sales agreements, a surge partly driven by buyers aiming to finalize purchases before the anticipated stamp duty hike in April. This momentum persists despite concerns over rising mortgage rates and a dip in consumer confidence. 

The supply side of the market has also seen improvement, with a 10% increase in the number of homes for sale compared to the previous year. This brings the average number of properties per estate agency branch to 31—the highest in seven years. Consequently, demand has risen by 13% year-on-year, supporting a 2% annual house price inflation rate, the highest since April 2023. The average UK house price now stands at £267,700, marking a £5,200 increase over 2024. 

Regionally, Northern Ireland leads with a 7.7% increase in average house prices, rebounding from a low base. The North West of England follows with a 3.2% rise. Notably, areas like Wigan and Motherwell have experienced significant growth, with prices increasing by 5.6% and 4.9%, respectively. In contrast, southern regions, including London, the South West, South East, and Eastern England, have seen more modest growth rates below 1.5%. 

The impending end of temporary stamp duty reliefs in April 2025 has notably influenced buyer behavior. First-time buyer demand surged by over a third in November and December 2024, particularly in properties priced between £300,000 and £625,000, where the impact of the stamp duty increase will be most significant. However, with the deadline approaching, it is now challenging for new buyers to complete purchases before the end of March to benefit from the current reliefs. 

Looking ahead, the housing market is expected to maintain its resilience. Analysts predict a 2.5% increase in house prices over 2025, with sales volumes reaching approximately 1.15 million, up from 1.1 million in 2024. Factors such as rising incomes and potential base rate cuts are anticipated to further improve affordability and bolster consumer sentiment. 

In the West Midlands, where the average house price is £232,900, a 2.2% increase over the past year, the market reflects the national trend of steady growth. As a leading estate agency in Staffordshire, Open House is well-positioned to guide clients through these dynamic times, offering expert insights and personalized services to meet diverse property needs.

In summary, the UK’s housing market has demonstrated remarkable adaptability and strength, with positive indicators across various metrics. As we progress through 2025, both buyers and sellers can remain optimistic about the opportunities that lie ahead.

The Office for National Statistics (ONS) has released its latest figures, revealing significant trends in the UK’s housing market. As of December 2024, average private rents across the UK have risen by 9.0% over the past year, slightly down from the 9.1% increase noted in November. This brings the average rent in England to £1,369, in Wales to £777, and in Scotland to £991. Notably, London continues to experience the highest rent inflation at 11.5%, while Yorkshire and The Humber report the lowest at 5.4%.

In parallel, the housing market has seen a 3.3% increase in average house prices, bringing the UK average to £290,000. England’s average house price now stands at £306,000, with Wales at £219,000, and Scotland at £195,000. These figures indicate a steady growth in property values, with the annual growth rate rising from 3.0% in October to 3.3% in November 2024.

Implications for Homeowners and Renters

For homeowners, the increase in property values suggests a positive equity trend, potentially enhancing borrowing power and investment returns. However, for prospective buyers, rising house prices may present affordability challenges, necessitating careful financial planning and consideration of mortgage options.

Renters are facing substantial annual increases in rental costs, particularly in urban centers like London. This trend underscores the importance of budgeting for potential rent hikes and exploring long-term housing solutions, such as homeownership, where feasible.

Navigating the Market with Open House Estate Agents Staffordshire

At Open House Estate Agents Staffordshire, we understand that navigating the complexities of the housing market can be daunting. Our team of experienced professionals is here to provide personalized guidance, whether you’re looking to buy, sell, or rent property.

Contact Us Today

Stay informed and make confident decisions in this dynamic market. Reach out to us for expert advice tailored to your unique circumstances.

• Phone: 01785 256100

• Email: Steve.lythgoe@localagent.co.uk

Partner with Open House Estate Agents Staffordshire—your trusted ally in the ever-evolving UK housing landscape.

Note: All statistics are sourced from the Office for National Statistics’ January 2025 release on private rent and house prices in the UK.

Anticipated Interest Rate Decline: Implications for Staffordshire Homeowners

Recent analyses suggest that the Bank of England may reduce interest rates to approximately 2.5% by late 2027, a more significant drop than the previously anticipated 3.75%.

Understanding the Forecast

Economists at Oxford Economics attribute this potential decline to factors such as demographic shifts and productivity trends. They note that, prior to the pandemic, low interest rates were influenced by an aging population and sluggish productivity growth. As current inflationary pressures subside, these structural factors are expected to influence interest rates once more.

Implications for Homeowners in Staffordshire

For homeowners and prospective buyers in Staffordshire, this forecast presents several considerations:

• Mortgage Planning: While a reduction in the Bank of England’s policy rate typically leads to lower mortgage rates, experts caution that significant decreases may not occur immediately. It could take a couple of years before mortgage rates fall below 4%.

• Market Dynamics: Lower interest rates can enhance affordability, potentially increasing demand in the housing market. This shift may influence property values and the speed at which homes are bought and sold.

• Strategic Timing: If you’re contemplating buying or selling property, understanding these projected changes can inform your decisions. Aligning your plans with anticipated market conditions may optimize outcomes.

Stay Informed with Open House Estate Agents Staffordshire

Navigating the evolving property market requires up-to-date information and expert guidance. At Open House Estate Agents Staffordshire, we’re committed to providing you with the insights and support necessary to make informed decisions.

Contact Us

For personalised advice and to discuss how these developments may affect your property plans, reach out to our team:

• Phone: 01785 256100

• Email: Steve.lythgoe@localagent.co.uk

Stay ahead of market trends with Open House Estate Agents Staffordshire—your trusted partner in real estate.

Note: Economic forecasts are subject to change. For the most current information, consult with financial advisors or industry experts.