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COVID-19: Stamp Duty Holiday “Tapering” Cools Housing Market As Price Heat Erosions | Business News

According to a closer look, average house prices have fallen for the first time since March last month as the UK and Northern Ireland stamp duty holidays have begun to end.

The National Building Association recorded a 0.5% decline this month-wiping out much of the profits seen in June as buyers were in a hurry to break the deadline for a full temporary tax cut.

Starting June 30, the threshold will be lowered from £ 500,000 to £ 250,000, returning to its previous state.COVID The pandemic level on September 30 is £ 125,000.

Introduced by the Prime Minister and in line with similar plans in Wales and Scotland, this holiday is believed to have helped the market recover from blockades and protect public health-providing pent-up demand and more space. Based on the enthusiasm of interest in real estate.

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How Tax Cuts and WFH Driven Housing Market Shift

But critics say it only helped push prices up, leaving real estate affordable for many first-time buyers, despite further government support.

Nationally, he said the annual rate of increase in house prices in July was 10.5%.

The number of transactions in June reached a record high of about 200,000, doubling the normal number to 13.4%.

It reported that the average home cost £ 244,229.

Robert Gardner, Chief Economist of Mortgage Lenders, said:

“Yes, home prices rose an average of 1.6% per month between April and June, more than six times the average monthly rise recorded in the five years before the pandemic.

“The tapering of stamp duty cuts in the UK is also likely to have removed some of the heat from the market.”

He describes the beginning of the end of tax cuts as follows: “If you buy more than £ 250,000, your maximum stamp duty savings since the end of June have dropped from £ 15,000 to £ 2,500.”

But nationally, he added that the UK-wide market was generally “strong” due to record low interest rates on mortgages and a shortage of new homes.

As he continues to work from home, housing demand still exceeds inquiries to apartments.

COVID-19: Stamp Duty Holiday “Tapering” Cools Housing Market As Price Heat Erosions | Business News

Source link COVID-19: Stamp Duty Holiday “Tapering” Cools Housing Market As Price Heat Erosions | Business News

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