House prices hit new record high as stamp duty scramble pumps up market | Business News

UK home prices hit a new record high in June as consumers scrambled to finish purchases previous to the winding down of a stamp duty vacation, official figures have confirmed.

The common worth hit £266,000, up by £31,000 or 13.2% on the identical month final year – the very best share rise since November 2004, in accordance the Office for National Statistics (ONS).

It confirmed comparable knowledge for June reported by lender Nationwide – which has additionally extra lately discovered that the market began to chill in July following the stamp duty adjustments.

The ONS stated consumers rushed to finish purchases earlier than the winding down of the stamp duty vacation

The new high for home prices surpasses a earlier record of £256,000 seen in March.

A tax break introduced final summer season meant consumers in England and Northern Ireland wouldn’t must pay any stamp duty on properties price up to £500,000.

It was credited with reviving the housing market after exercise slumped in the course of the first lockdown although critics level out that the enhance offered to prices has made getting onto the housing ladder much more unaffordable to many.

The market noticed a famous spike earlier this year with the tax vacation on account of finish in March nevertheless it was then prolonged, with the £500,000 ceiling lowered to £250,000 from 30 June and returning to its normal cap of £125,000 on the finish of September.

Similar insurance policies in Scotland and Wales, with thresholds of £250,000, resulted in March and June.

Mike Hardie, ONS head of prices, stated: “In June, UK house prices saw their highest annual growth since 2004.

Rishi Sunak introduced the stamp duty vacation final year

“This figure, however, was boosted by large monthly growth, with a rush to complete purchases before changes to the stamp duty holiday came into effect at the end of June.”

The ONS stated common prices in June elevated by 13.3% over the year in England to £284,000 whereas in Wales they climbed 16.7% to £195,000, in Scotland by 12% to £174,000 and in Northern Ireland by 9% to £153,000.

London noticed progress of 6.3% – persevering with to see the bottom stage of regional home worth will increase for the seventh month in a row, although its common worth of £510,000 stays effectively forward of others.

The quickest rate of progress was within the North West of England, the place prices climbed by 18.6% to simply above £200,000.

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