The annual average UK House price growth slowed to 10.5% that month Stamp duty holiday Come in.
Nationwide Chief Economist Robert Gardner said: “Given the significant gains recorded in recent months, the slight fall in July is not surprising. In fact, between April and June, House prices rose by an average of 1.6% per month, more than six times the average monthly increase in the five years before the pandemic.”
During the virus crisis, many people have been reassessing housing needs, such as whether they want more outdoor space. The stamp duty holiday introduced last year also boosted the industry.
June is the last month when buyers can enjoy stamp duty on property sales up to £500,000. From July 1st to September 30th, the threshold for stamp duty holidays is £250,000.
Nationwide’s Gardner said that the gradual reduction in stamp duty relief “may have eliminated some of the heat in the market.”
He expects that, driven by the rebound in consumer confidence, the low borrowing cost and the lack of market supply, potential demand will remain stable in the near term.
However, Gardner warned that the prospects for the end of 2021 are more difficult to predict.
Guy Gittins, Chief Executive Officer of Chestertons, a real estate agency chain, said: “Due to the stamp duty holiday, the market activity we have seen swells, and after unprecedented real estate sales in the first half of this year, it seems to have finally reached its peak .”
Mark Harris, CEO of SPF Private Clients, a mortgage broker, noted that people are eager to complete the transaction before July. He said: “The reduction in stamp duty savings is an important incentive for buyers to complete the transaction by the end of June if possible, and many people are doing their best to do so.”
