The UK housing market has responded sharply to the end of the stamp duty holiday, with house sales down by more than half, according to a new report from HMRC.
As we reported recently, there’s also been a drop in house prices – however, these effects have been largely restricted to the upper end of the housing market. Residencies of four bedrooms or more dropped 0.8 per cent, while houses with three bedrooms or less continued to steadily rise in price through July and August.
The drop in the number of house sales was widely predicted, as people rushed to complete their transactions before the 30th June, the date on which the UK government’s temporary tax relief on property transactions ended. The temporary tax relief provided exemption from stamp duty on property sales of £500,000 or less, compared to the standard threshold of £250,000.
Even so, industry observers were surprised at the scale of the drop-off and HMRC described the change as an “expected but noticeable decrease”.
It remains to be seen whether this news represents more than a blip on the rapidly rising house prices currently in evidence across Yorkshire. This trend is particularly pronounced in coastal areas, where prices have increased by an average of seven per cent in the last year (in comparison to an increase of five per cent in town and city property prices).
It is believed that these trends reflect people’s changing attitudes in the wake of the coronavirus pandemic, as people have increasingly sought out properties with outdoor areas and access to green spaces, fresh air and good views.
If you’re looking for houses to buy in Hull and East Yorkshire, or if you need someone local to help you sell your home, contact us today and we’ll see if we can help.