House prices have risen by more than £10k in the last year, putting more homes in the higher SDLT group.
According to Zoopla’s newest house price index, house prices have increased by an average of £10,246 per property over the last 12 months. More than 1.8 million properties have been forced into a higher stamp duty land tax (SDLT) bracket as a result of the substantial price increase.
According to Zoopla, UK property prices have risen at their fastest rate since October 2016. Despite the stamp duty threshold shifting tomorrow, the property website claims that there is no sign of the market “cliff edge” that many analysts predicted. When compared to the peak of the pandemic, buyer demand is down by 28%.
Demand is, however, still 55% greater than the average reported in the more “normal” market of 2019.
Across the country, property demand continues to outstrip supply.
The total number of listings has apparently reduced by -24% year over year.
Despite the shortage of inventory, the UK is on track to sell 1.5 million units by the end of the year.
According to Zoopla, first-time buyers are “absorbing” house stock in order to take advantage of stamp duty concessions and finance choices.
A startling 1.8 million UK houses have been forced into the higher stamp duty category as property prices rise.
The threshold for property tax relief is set to be slashed from £500,000 to £250,000 starting tomorrow.
If 940,000 additional homes in the UK sell, they will be subject to 5% stamp duty, while an additional 130,000 will be subject to a ten percent stamp duty.
In England, the number of homes in the lower stamp duty bands is decreasing, while the number of homes in the top bands is increasing due to price rise.
The housing market is still thriving below the stamp duty level.
Until the end of September, homes priced up to £250,000 are exempt from paying stamp duty.
While demand for properties under £250,000 has decreased by 24% since April, it is still 75% greater than the average observed in 2019.
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Demand for homes exceeding £250,000 has dropped by a third since April, but is still up 86 percent from the same period last year.
The stamp duty vacation, according to Grainne Gilmore, Head of Research at Zoopla. “Brinkwire News in Condensed Form.”