Annual rise in house prices slowed this month, but experts say it’s predictable.
HOUSE PRICE GROWTH “SLOWED” IN JULY, with both annual and month-to-month price declines. Experts, on the other hand, argue that the dropback this month is “unsurprising” and that double-digit yearly growth is “phenomenal.”
According to Nationwide’s newest house price index, annual house price increase decreased in July but remained in double digits. House price rise slowed to 10.5 percent in July from a 17-year high of 13.4% in June 2021. In July 2021, the average property price will be £244,229, according to this estimate. After accounting for seasonal impacts, house prices declined by 0.5 percent month over month.
Given how much average prices have climbed over the prior few months, Robert Gardner, Nationwide’s Chief Economist, said the “small drop” this month is “unsurprising.”
From April to June, house values grew by an average of 1.6 percent every month, more than six times the average monthly rise seen in the five years prior to the coronavirus outbreak.
At the end of June, the stamp duty holiday threshold was also lowered.
Mr Gardner believes this has “taken some of the sting” out of the UK property market, which has been scorching hot.
Since July 1, the zero rate band threshold has been reduced from £500,000 to £250,000, and it will remain at that level until the end of September.
Except for first-time purchasers, it will revert to its previous £125,000 cap on October 1.
The stamp duty vacation, which began in July 2020, encouraged buyers who had been planning to sell and buy elsewhere to carry forward with their plans.
It also urged purchasers to finish their purchases before the end of June in order to take advantage of the stamp duty exemption on higher-priced properties.
After the end of June, the maximum stamp duty saving for anyone purchasing a house worth more than £250,000 was decreased from £15,000 to £2,500.
“As home purchasers scrambled to beat the deadline, the number of housing market transactions reached a record high of nearly 200,000 in June,” Mr Gardner continued.
“This was over twice the number of transactions recorded in a regular month prior to the pandemic, and 8% more than the previous high of March.”
House prices have increased, therefore the savings from the stamp duty break have been swamped.
However, property tax reductions aren’t the sole element influencing the. “Brinkwire News in Condensed Form.”