The latest figures from property portal Rightmove reveal record asking prices across the UK regions. But as the government’s stamp duty holiday deadline looms, many commentators believe the market may have peaked.
The average price of properties coming to market rose by 0.8% month-on-month in June, according to Rightmove – the largest June increase since 2015.
However, the data also showed that sales activity is waning. Comparing the market to the pre-pandemic period, sales agreed in May were 17% up on the same month in 2019 – April’s figure was 45% higher than two years ago.
In London, prices rose by 1.8% year-on-year bringing the cost of an average property to £650,000. The average cost of a property UK-wide is just over £336,000. The relatively high cost of London homes has pushed up prices in areas including Wales and the South West, as cash-rich Londoners relocate from the capital.
The threshold at which stamp duty needs to be paid, in England, will fall from £500,000 to £250,000 on 1 July, when the first phase of the Chancellor’s stamp duty holiday ends. In September it will be reduced to the pre-pandemic level of £125,000.
As the first deadline approaches, activity in the market has slackened. However, the high levels of demand have also led to a shortage of available properties.
According to Tim Bannister, Rightmove’s director of property data: “Buyer demand remains very strong, though, with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.”
He added: “This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”
Kubie Gold Associates are an independent local firm of estate agents specialising in the Rental, Sale and Property Management of Residential Property in the North-West and Central London market
