Property: House prices grow by 7.6 per cent with stamp duty deadline looming

House prices grew by 7.6 per cent in the year to November, according to the latest data from Halifax, with buyers trying to complete transactions before the end of the stamp duty holiday.

House prices rose by 1.2 per cent month-on-month but by 7.6 per cent year-on-year, with the average house price in November reaching £253,240.

The housing market has recovered positively from the enforced closure during the first lockdown and despite some market indicators stating that activity was cooling off, with activity and new instructions falling, the yearly increase in house price represents the strongest growth since summer 2016.

The impact of the stamp duty holiday is also now being felt, with the Chancellor, Rishi Sunak, introducing the temporary holiday to boost the property market, meaning that the threshold at which stamp duty is paid has increased to £500,000 until 31 March 2021.

Stamp duty has also been cut for those purchasing additional properties, starting at a rate of three per cent up to £500,000.

Russell Galley, Managing Director at Halifax, said: “The housing market has been much more resilient than many predicted at the outset of the pandemic.

“Many households remain confident about further price growth next year”.

A recent study of different price bands for properties indicated that the higher price bands have seen a sharper rise in activity since the introduction of the stamp duty holiday, with buyers rushing to take advantage of significant stamp duty savings.

For help and advice on matters relating to residential property law, contact Gunduz Misiri at Mackrell.Solicitors today.