Local House Prices Continue to Increase and Stamp Duty Holiday Explained
By Charlie Higgs – Owner Village Properties
The latest national ‘House Price Index’ from Rightmove, confirms the price of property coming on to the market continued to rise during June. The increase, slightly less than in previous months, is 0.8% in the month, although still the biggest increase at this time of the year since 2015.
House prices are now at their highest ever recorded across all areas of the UK.
The report also highlights that whilst prices continue to climb, the all-time low numbers of property coming onto the market is beginning to put the brakes on the booming UK property market. Despite the reported slowing of the market, sales agreed in May are up 17% on the same period in 2019.
Interestingly, the top end of the market seems to be faring better than the middle and lowers sectors, with the number of sales agreed on properties over £500,000 up by 49% compared with the same period in 2019. The + £500k market is also reporting a considerably higher increase in price up 12.3% compared to 7.5% for all properties, this equates to a staggering average increase of +£67k since march 2020.
How will the changes to stamp duty affect the market?
The ending of the stamp duty holiday has been a hotly debate topic and many have predicted this is likely to result in the end of the boom. If our own anecdotal experience is anything to go by, at the time of writing (end of June 2021) there is no evidence of any slowing of the Reading property market.
As reported in previous months, the local market is very active with buyers from all sectors looking to move. The trends ebb and flow from month to month, last month we had a run of family homes, the month before first time buyers, the dominant sector this month seems to have been those looking for a life style change. Buyers looking for more space, inside and out, an extra bedroom for a home office or space in the garden to build a work room.
We have seen this trend over the months but with the reality of home working likely to be more of a longer term option, buyers are looking to take advantage and move to a home where this is viable.
Stamp Duty Holiday Explained
Stamp Duty Land Tax (SDLT), its official title, had its nil rate band, which is the rate before you start paying SDLT on residential property, temporarily increased to £5000, 000 on the 1st July 2020 and was originally due to end on 31st March 2021 but later extended to 30th June 2021.
From the 1st July 2021, the nil rate band is reduced to £250,000, this ends on 30 September 2021. And then, from the 1st October 2021, the nil rate band will revert to the pre-pandemic level of £125,000.
To calculate stamp duty, the government provides a very useful Stamp Duty Land Tax calculator – Click here
Local Market Trends
In the South East region, which includes Berkshire, the ‘House Price Index’ shows the current average house price is £444,341, an increase of 0.7% in the month, that’s an 8.7% increase from March 2020. And that the number of days to sell a property is 44 days.
Charlie Higgs
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