UK property market remains strong after stamp duty holiday

A jump in house prices and property sales in November marked the end of an “astonishing” year for Britain’s property market, according to data released by the government’s Land Registry on Wednesday.

House prices rose 10% a year in November and 1.2% from October, taking the average UK house price to £270,708 ($368,838), according to the report .

“Last year turned out to be an amazing year for the real estate market, with prices and demand defying the expectations set by the pandemic in January,” said Nick Leeming, president of real estate agency Jackson-Stops, in a press release. “While today we see a slight increase in average house prices compared to those recorded in October, the figures still reflect a lack of supply in the market.”

The estimated number of residential property transactions in November, excluding those worth less than £40,000, was 96,290, a jump of more than 24% from the previous month.

However, the figure was also 16.4% lower than 12 months earlier.

The biggest price increases were recorded in the South West of England, a region home to cities such as Bristol and Bath, where prices rose 12.9% in the year to in September.

The smallest appreciation was recorded in London, where prices increased by 5.1% over the same period. Despite weak price growth, the city remains the most expensive market in the UK, where average prices reach just under £520,000, according to the report.

“Any fears that the end of the stamp duty holiday could lead to lower property price growth can now be well and truly dispelled,” said James Forrester, managing director of estate agency Barrows and Birmingham-based Forrester in a statement. declaration.

“Not only has the market maintained its momentum, but it has continued to pick up speed during what is usually a quieter time of year,” he added. “Expect the same in 2022 as demand remains robust, inventory remains scarce and the cost of borrowing remains very affordable.”

The stamp duty holiday was a tax relief introduced in the UK during the peak of the coronavirus pandemic in July 2020, which removed transfer tax on the first £500,000 of a house sale with savings ranging from up to £15,000 available for buyers.

The public holiday was phased out and reverted to the typical stamp duty system at the end of September 2021.

Penny D. Jackson