Buyer demand has moderated as stamp duty holiday ends but remains elevated compared to ‘normal’ market conditions. ‘Search for space’ among homebuyers, as well as increased numbers of first-time buyers and those making lifestyle changes, will continue to support activity through H2
Average house prices rose by 1.1% in the three months to May, taking the annual rate of growth to 4.7%, matching that in February – which was the highest level of growth since the beginning of 2017. Prices are being supported by elevated levels of demand – despite a recent moderation approaching the end of the initial stamp duty holiday on June 30th.
Average house prices in the UK have risen by more than £10,000 over the last year, taking the average price to £229,300.
Homes move up stamp duty bands
Price growth over the last year mean that some 1.8 million properties in England have moved into a higher stamp duty bracket, as shown below. Some 940,000 additional homes will be subject a level of stamp duty at 5% should they be purchased by a home mover, while an extra 130,000 properties will attract some stamp duty at 10%.
