UK house prices rise sharply as stamp duty holiday ends

0

House prices have risen again in the UK, despite the end of a government tax cut. Photo: PA

UK house prices hit a new all-time high in September, rising sharply as the stamp duty cut ended.

According to the monthly Halifax House Price Index, prices rose 1.7% in September, adding more than £ 4,400 to the value of an average property.

This monthly growth rate was the highest since February 2007, pushing year-on-year house price inflation to 7.4%.

It also reversed the recent three-month downward trend in annual growth, which peaked at an annual rate of 9.6% in May. The price of an average house is now higher than it has ever been, amounting to just over £ 267,500.

“While the end of England’s stamp duty holiday – and homebuyers’ desire to close deals quickly – may have played a part in these numbers, it’s important to remember that most mortgages agreed to in September would not have gone through until the tax break expired, ”said Russell Galley, chief executive officer of Halifax.

“This shows that several factors played an important role in the evolution of house prices during the pandemic.”

Galley adds that the space race has had an impact on where and what people buy, with homes with outdoor space and near green spaces winning in terms of higher prices compared to apartments.

Graphic: Halifax

Graphic: Halifax

Read more: UK mortgage approvals drop as stamp duty holiday frenzy ends

“Perhaps the most important factor in determining the future of house prices remains the limited supply of available properties. With real estate agents reporting a further reduction in the number of homes for sale, this should support average prices – but not the recent rate of price growth – next year, ”Galley said.

Halifax said Wales continues to experience the highest house price inflation of any region or nation in the UK, growing 11.5% annually in September (average house price of 194,286 £).

Watch: How much money do I need to buy a house?

Scotland also continues to outperform the UK national average, growing 8.3% (average house price of £ 188,525). In both countries, the equivalent stamp duty holidays ended at an earlier date.

The worst performing regions in terms of annual house price inflation are all found in the south and east of England, although it should be emphasized that these are also the areas where average house prices are the highest. The East of England has seen an annual growth of 7.2% (average house price of £ 310,664) while in the South East it is 7% (average house price of 360,795 £).

Read more: What the end of the stamp holiday means for the housing market

Greater London remains the outlier, growing only 1% annually (average house price of £ 510,515), and was again the only region or nation to record a decline in house prices in the during the last rolling three-month period (-0.1%)

Watch: Home Prices Create Surprise Rise Despite End Of Stamp Duty Holiday


Source link

Leave A Reply

Your email address will not be published.