As the stamp duty holiday draws to a close, the housing market has now begun to cool off.
Industry research has shown house prices dropping slightly in July, in comparison to June, but are still 10.5% higher than a year ago.
Any stamp duty savings have been surpassed by rising house prices. However, it is not just the tax break that has created the housing boom, there has been a strong demand for more space.
According to statistics, annual house price increases were at a 17-year high in June but slowed slight in July.
Breaks for stamp duty, or equivalent tax, were withdrawn in Wales at the end of June, and became less generous in England and Northern Ireland at the same time. The tax will return to pre-pandemic levels by October.
Chris Birds, Partner at Boxall Brown & Jones said “The tapering of stamp duty relief in England has definitely taken the heat out of the property market. This has given many of our clients the incentive to complete their house purchases before the end of June, especially for higher priced properties.”
The number of properties being sold each month has hit levels not seen since comparable records began in 2005.
More statistics have shown that the market for large properties has surged, while sales of flats have fallen.
The number of transactions for properties bought for £500,000 or more increased by 37% over the last 12 months to March, compared with a rise of 2% for other properties.
The search for space, including indoors and outdoors, has driven demand for larger homes as more people have been living and working from home during the pandemic. This means that flats without gardens and in some cases, with issues over cladding and fire safety, have been more difficult to sell.
Anthony Lomas, Partner at Boxall Brown & Jones commented “it will be interesting to see how the demand for properties changes as we head into autumn. This will give us the opportunity to evaluate just how effective the stamp duty holiday has been at keeping the property market afloat since the start of the pandemic.”
“While the appeal in recent times has been for larger properties with more outdoor space, we may see luxury apartments come back into trend as the drift back to the office begins to gather pace in the larger cities.”
With properties flying off the shelves at Boxall Brown & Jones, there has never been a better time than now to sell or let out your property. If you would like assistance from our property experts please contact us on:
Tel: 01332 383838
Email: [email protected]