Value of a house soars by £14k in simply six months… however specialists concern increase may fade away as soon as stamp responsibility vacation ends
- Common value of a house within the UK jumped to file £252,211 on the finish of 2020
- Market was ‘turbocharged’ by Chancellor Rishi Sunak’s stamp responsibility vacation
- Greatest regional annual rise was 8.7 per cent within the South West, to £258,906
Home costs have risen by £14,000 in six months – however specialists warn that the increase may run out of steam when the stamp responsibility vacation ends.
The typical value of a UK residence jumped to a file £252,211 on the finish of 2020, up from £238,001 halfway by way of the 12 months, figures present.
Pent-up demand from households looking for greater houses following the primary nationwide lockdown drove the market bonanza and it was turbocharged by Rishi Sunak’s stamp responsibility vacation on the primary £500,000 of the acquisition value of a predominant residence.
The figures from Halifax and IHS Markit present that costs on the finish of the 12 months had been 7 per cent increased than a 12 months earlier.
Home costs have risen by £14,000 in six months with the common value of a UK residence at a file £252,211 on the finish of 2020 (file photograph)
The largest regional annual value rises had been 8.7 per cent within the South West, the place the common residence now prices £258,906, and eight.5 per cent within the West Midlands, the place they rose to £213,810.
Costs additionally jumped by 7.5 per cent within the East Midlands and the North West, the place the common residence prices £206,499 and £187,740 respectively.
The Chancellor unveiled the stamp responsibility vacation in July in an try to spice up home gross sales – and the broader financial system. However specialists now concern costs may slam into reverse once more this spring, with the tax break on account of end on the finish of March, adjustments being made to first-time purchaser assist, and the Authorities’s pandemic furlough scheme on account of be wound up in April.
Consultants have referred to as on Chancellor Rishi Sunak to increase the stamp responsibility vacation
The warnings have boosted requires Mr Sunak to increase the stamp responsibility vacation, or abolish the tax altogether.
Paul Smith, of IHS Markit, mentioned yesterday: ‘Regardless of the notable financial headwinds dealing with the nation, the UK housing market loved one other stellar quarterly efficiency within the closing three months of 2020.
‘Nonetheless, with the ending of the stamp responsibility vacation and scaling again of Assist to Purchase on the finish of March, plus the continued financial challenges associated to coping with the pandemic, it’s unlikely that such optimistic market momentum might be sustained for an excessive amount of longer.’
In November authorities spending watchdog the Workplace for Finances Accountability predicted costs may fall by 3.5 per cent this 12 months and by one other 2.6 per cent in 2022, solely returning to development in 2023.