Home prices rise rapidly as stamp duty vacation ends, 2007 race from housing boom continues


Despite the end of the stamp duty holiday, home prices have risen to a new record high since the 2007 housing boom continued to ‘res for space’.

Mortgage lender Halifax has shown that the average UK home price rose by almost 4,400, or 1.7 per cent, between August and September, the fastest growth since February 2007.

On an annual basis, price inflation rose 7.4 per cent, to 7.2 per cent in August, while the average home is now at a new high of £ 267,587.

‘Race for Space’: Separated and semi-detached prices have gone up faster than flats

Prices of detached and semi-detached homes have risen faster than flats, which suggests that people looking for larger homes have ‘undoubtedly had a major impact’, said Halifax.

Average flat prices were up 6.1 per cent over last year, compared with 8.9 per cent for semi-detached properties and 8.8 per cent for detached properties.

According to the report, there was an increase in cash for detached assets of about £ 41,000 compared to just £ 6,640 for flats.

Russell Galley, managing director of Halifax, said: ‘When stamp duty holidays in England end – and the desire to end fast deals among home buyers – may have played a part in these figures, it is important to remember that most mortgages agreed are not completed before the tax break expires.

This shows that multiple factors played a significant role in home price growth during the epidemic.

The ‘race for space’ was undoubtedly a major influence as people changed their preferences and lifestyle choices. ‘

Annual house price growth rose to 7.2% in August from 7.4% in September

Annual house price growth rose to 7.2% in August from 7.4% in September

Meanwhile, the supply of limited assets, a further decrease in the number of homes for sale, and lower mortgage rates are likely to support prices next year, even if growth is likely to slow, Galli added.

Nicki Stevenson, managing director of National Estate Agents Group Fine and Country, said: ‘Home prices growth has accelerated as the market crumbles.

‘This is the exact opposite of the logic that should happen in September and tells you that the rally is not over.’

And added: ‘The epidemic has done much more than reach record highs.

‘Changes in property shopping habits can have some permanence that has so far been just a trust article, once you continue to price the persistent stock shortage.’

But when we look behind headline numbers, the market is complicated, ”said Tom Brown, managing director of Ingenius Real Estate.

‘While many parts are growing, city center flats do not always capture the overall picture of demand.

‘When analyzing housing markets, it is important that we look closely at the subdivisions and the areas where they are located.’

Limited supply: Estate agents are reporting further reductions in the number of homes for sale

Limited supply: Estate agents are reporting further reductions in the number of homes for sale

Lucy Pendleton, property expert at independent real estate agent James Pendleton, said: ‘When we saw monthly increases like this last time, Tony Blair was prime minister.

‘All the talk of this rally is still right, with the most bullish markets on record.

However, London continues to perform poorly. Average prices are so high in the capital that popularity is not a problem on paper but investors have been keeping a close watch on London’s post-epidemic recovery.

Home mowers have been pushed into the high stamp duty bracket

Although stamp duty has invited more people to go home, the rise in prices has proven to be the wrong economy.

Home buyers avoided paying home taxes of up to £ 500,000 until July, when the threshold dropped to £ 250,000 until October, when it returned to the normal £ 125,000.

In June 2020 in Halifax – the month before the tax cut was introduced – the general price of UK property was £ 239,317, meaning buyers would have to pay about 3 2,300 in stamp duty.

But by September 2021, average home prices have increased by £ 28,270 – which is 12 times the initial savings.

Now, after tax breaks and home prices hit a new record of more than $ 267,500, home buyers face a bill of about £ 3,400 because they are being pushed into a higher stamp duty bracket – a 5% tax rate applies between 250 250,000 to £ 925,000, Halifax said.

How are prices changing in different areas?

Annual increases and average prices for each region

East England, £ 310,664, 7.2%

East Midlands, £ 219,631, 8.0%

London, £ 510,515, 1.0%

Northeast, £ 155,683, 8.0%

Northwest, £ 201,927, 9.0%

Northern Ireland, £ 166,299, 9.3%

Scotland, 188,525, 8.3%

Southeast, £ 360,795, 7.0%

Ny West, £ 276,226, 9.7%

Wales, £ 194,286, 11.5%

West Midlands, £ 225,404, 7.2%

Yorkshire and Humber, £ 186,815, 8.9%

Source: Halifax

Wales and Scotland continue to see some rapid price hikes, even though the stamp duty holiday has ended ahead of England.

Wales has recorded the strongest house price inflation in any UK region, with annual growth of 11.5 per cent in September and an average home price of £ 194,286.

But Greater London remains the worst performer because prices have risen by just 1 per cent year-on-year since September to an average of 10 510,515.

Average home prices in Scotland rose 8.3 per cent to £ 188,525, with the Nine West being the strongest performing area in England, with annual home prices rising by 9.7 per cent.

Halifax said: “All of the weakest performing regions in terms of annual home price inflation are in the South and East of England, but these are also areas with above-average home prices.”

Commenting on London prices, Pendleton added: ‘While restoring the office is still in progress, according to the number of people we talk to, U-Turn on plans to move to the country, rumors that London’s demand is declining are increasingly overstated. ‘

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