Halifax housing data
The Halifax data out today, suggested house prices dipped 0.5% in June as the stamp duty holiday began to be phased out.
Prices were up 8.8% over the year, leaving average prices still more than £21,000 higher, following a recent period of gains.
In the last year the UK housing market was stimulated by a stamp duty tax holiday introduced by the government to boost the property market. This is now being phased out as the economy recovers from the pandemic.
From June 2020, buyers didn’t have to pay any stamp duty on the first £500,000 of the purchase price. At the start of July, stamp duty breaks began to return to pre-pandemic levels.
Now a 5% tax will start at £250,000 for properties up to £925,000. Rates on properties above that are higher.
From October rates stamp duty will revert back to and start at £125,001.
Demand up
Demand is high as buyers search for larger family homes with the average price of a detached property climbing faster than any other type up by more than 10%.
Detached homes now cost on average more than half a million pounds, £200,000 more expensive than the typical semi-detached house.
The gradual removal of the stamp duty holiday does not mean prices will crash. Some buyers are simply holding off selling their property as they cannot find desired property. Supply and demand laws have pushed prices higher.