UK house prices rise at fastest rate since 2004

British house prices have risen at their fastest annual rate since 2004. Figures from the Office for National Statistics (ONS) show that the month of June witnessed a surge in the housing market ahead of the phasing out of the stamp duty holiday.

House prices in the UK in June 2021 were 13.2% higher than in June the previous year. This followed a 9.8% annual increase in May 2021.

The price of property in the Northwest of England experienced the highest rises, jumping by 18.6% in annual terms in June. Property prices in London in the same month fared slower but were still up by 6.3%.

The house price surge has been described as “berserk.”

The stamp duty holiday, which was introduced in July 2020 and a means of reversing the slump in property sales at the start of the pandemic, has seen an estimated 1.3 million buyers pay no tax on the first £500,000 of their property price, according to data from Rightmove.

A consequence in the change in tax legislation has resulted in a £16,000 rise in the average asking price of a home since July 2020.

The phasing out of the tax break began in July 2021 but still offers savings for homebuyers until October 1, 2021. During this period, the first £250,000 of the cost of a property remains exempt from stamp duty charges. From October 1, 2021, the tax break will be completely phased out.

Some experts believe the ending of the stamp duty holiday will ‘calm the market’ and help more first-time buyers achieve home ownership dreams and get on the property ladder in Britain.

With house prices remaining buoyant in the UK and breaks on stamp duty still available until the end of September this year, now could be a shrewd time to purchase a property at auction.

Check out the great properties we have listed in our next property auction.