No sign of a let up in house price boom - Palmers Solicitors

No sign of a let up in house price boom

No sign of a let up in house price boom

The continuing boom in house prices in the UK shows no sign of abating, according to the latest survey from the Office for National Statistics (ONS).

According to its House Price Index (HPI) report, in the 12 months to June this year, house price inflation stood at 13.2 per cent.

It will be bad news for first time buyers anxious to get on the housing ladder with the average price of a house rising by £31k over the past year to stand at £266k.

Once again, the capital was hit, with London recording the smallest annual increase of 6.3 percent, while the North West recorded the biggest increase of 18.6 per cent. However, the capital’s average house prices remain the most expensive in the UK at £510,000, while the north east remained lowest at £150,000.

Of the four UK nations, the biggest surge in prices came in Wales with 16.7 per cent, followed by England on 13.3 per cent, Scotland on 12 per cent and Northern Ireland on nine per cent.

The Chancellor’s extension to the Stamp Duty holiday in England and Northern Ireland is thought to have triggered much of the boom, but other factors have come into play, including people looking to change the type of accommodation people require following the pandemic, with many seeking to move away from cities and work from home.

The tax holiday was extended until 30 June 2021, but from 1 October 2021, the threshold will revert to pre-Covid levels.

Commenting on the figures on his Twitter feed, ONS Head of Prices, Mike Hardie, said: “The average price of UK houses now stands at £266,000 which is £31,000 higher than at this time last year.”

He added that the UK had seen the largest growth in house prices since 2004, fuelled by people in a rush to complete their purchases before the end of the stamp duty holiday.

Nicola Tubbs, a Director with Palmers Solicitors and Head of the Residential Conveyancing team, said: “These reports certainly tally with our own personal experiences here at Palmers. The past few months have been non-stop, not only for our team but for the other solicitors, estate agents, surveyors and mortgage advisors that we work with.

“Although the £500,000 stamp duty holiday has now ended, there are still many homebuyers who are hoping to take advantage of the tax free incentive still available on homes up to £250,000 and we expect that it will be a race to the finish to complete before the 30 September deadline.”

For help and advice with all residential property matters including conveyancing, please get in touch with our expert team today.