Property prices rocket by £30,000 thanks to stamp duty holiday

Brits have begun house-hunting again in a big way after the coronavirus lockdown put a halt to the vast majority of sales for three months.

Average property prices have increased by £30,000 and sales are up by 20% since stamp duty was cut by the chancellor Rishi Sunak.

Brits have begun house-hunting again in a big way after the coronavirus lockdown put a halt to the vast majority of sales for three months. 

The latest statistics show the number of sales per week is currently 65 per cent higher than it was this time last year, The Times reports.

In February, average property prices were £260,000. They now stand at £290,000, according to house price data firm Twenty Ci. Their stats show the rise has particularly affected the north of England and Wales, with 15% growth in the median asking price. 

Central London remains the most expensive place to buy a house in the UK but it is also the only area where prices are falling – down 1.71% to £575,000. 

The boom could be short-lived, with experts warning a crash is coming towards the end of the year.

Pablo Shah, a senior economist at the Centre for Economics and Business Research, told The Times: ‘We anticipated a 6% rise in property transactions as a result of the stamp duty cut. 

‘The figures we see here are probably this plus sales which were delayed as result of the lockdown and those that are being brought forward from next year.

‘The stamp duty cut is propping up the market this summer but it won’t be sufficient to negate the effect of the end of the furlough scheme and mortgage payment deferrals later this year which is why we still believe that property prices will fall towards the end of the year and into next year.’

Last month the chancellor announced no one would pay stamp duty on homes worth less than £500,000 until March next year. It was a key part of his Covid-19 recovery package, intended to kickstart the market.

Buyers are likely to save an average of £4,500 and a maximum of £15,000 from not having to pay stamp duty but this has now been eclipsed by the higher price they will have to pay for their new home.

Mr Sunak has previously said that property transactions fell by 50% in May and house prices had fallen year-on-year for the first time in eight years.

Homebuyers rushed online to look for a place to buy within half an hour of the Chancellor’s announcement.

Rightmove reported a 22% jump in traffic to its site within 30 minutes of Mr Sunak confirming the cut in his mini-Budget on July 8.

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