UK house price growth has dropped to its slowest pace in fourth months, new data shows, as the end of the temporary stamp duty holiday ended a boom in the property market.
Halifax said on Friday that annual house price growth in the UK slowed to 7.6% in July, down from 8.7% in June. July’s reading was the lowest since March. The slowdown came as a tax break on property transactions came to an end.
The chancellor announced a stamp duty holiday in July 2020 that ended in June. This easing was somewhat expected given the strength of price inflation seen last summer, as the market began its recovery from the first lockdown, and with activity supported by the start of the stamp duty holiday.
In cash terms, typical prices now stand at just over £261,000 – a little below May’s peak but still more than £18,500 higher than a year ago (Source: Halifax). Wales and the North of England recorded the strongest house price growth across the UK. Prices rose by 13.8% in Wales, which was the highest monthly increase since 2005.
London saw some of the weakest price growth, at just 2.5%. Recent months have been characterised by historically high volumes of buyer activity, with June the busiest month for mortgage completions since 2008. This has been fuelled both by the ‘race for space’ and the time-limited stamp duty break. With the latter now entering its final stages (the zero percent rate only applies to the first £250,000 of the purchase price, before reverting to standard rates from October), buyer activity should continue to ease over the coming months, and a steadier period for the market may lie ahead.
If you are coming to the end of your mortgage product, looking to purchase a new property or keen to compare your current rate to the best available elsewhere, please contact your adviser who can put you in touch with our mortgage partners.
Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.
Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.
Your home may be repossessed if you do not keep up with payments on your mortgage.
You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.
As tax year end approaches, there is still time to make use of your available reliefs and allowances.
This tax year end planning checklist covers the main planning opportunities available to UK resident individuals and will hopefully help to inspire action to reduce tax for the 2023/24 tax year and to plan ahead for 2024/25.
As tax rate band thresholds are changing, understanding the impact on high rate taxpayers and the economy is crucial.
It was recently revealed in the media that the amount we need to enjoy a ‘moderate’ retirement has increased by £8,000 per annum, a 38% increase, in just one year.