Property News

Government shares house price data for final month of Stamp Duty holiday

Em Morley - August 23, 2021

The statistics for June 2021 reported in the Government’s UK House Price Index reveal an annual price change of 13.2%.

The monthly price change for a property in June was 4.5% and the overall average price of a UK property was £265,668.

Industry reaction to the Government’s latest house price data

Marc von Grundherr, Director of Benham and Reeves, comments: “Another behemoth level of house price growth both on a monthly and annual basis, no doubt influenced by the first of the staggered extensions to the Stamp Duty holiday as homebuyers purchasing above the £250,000 threshold continued to scramble to secure a saving before the clock expired. 

“The London market has seen a lesser degree of property market manipulation as a result of the Stamp Duty holiday. As a result, the capital continues to trail where property price appreciation is concerned but we’re seeing a far more stable market start to emerge and one that is showing greater long-term momentum as both domestic and foreign interest start to return.

“Sales are increasing, sellers are achieving a greater level of asking price than they were just a few months ago, and all of these indicators suggest a property market resurgence is stirring.”

James Forrester, Managing Director of Barrows and Forrestercomments: “The UK property market continues to flourish driven, in part, by the Stamp Duty holiday but also the ongoing trend for larger homes, with detached properties seeing a huge 15.6% annual increase. 

“We now know that the initial Stamp Duty deadline at the end of June has failed to dampen this appetite and the market cliff edge that many predicted is now starting to look very unlikely. With buyer demand remaining extremely robust and stock shortages plaguing much of the market, it’s safe to say house prices will continue to climb throughout the remainder of the year.”

Colby Short, Founder and CEO of GetAgent.co.uk, comments: “We’ve seen an uplift in transaction levels in the last year alone and properties are now selling far quicker and for a much higher price. 

“However, it’s important to remember that when looking to buy in current market conditions you’re really facing a two-speed market posing very contrasting challenges. 

“The initial challenge is securing a property as they go under offer within weeks, sometimes days, of being listed for sale. The cost of doing so is also going to be considerably higher and that’s something to factor in when looking to buy. 

“But beyond this point, there remain sizable delays and so the likelihood is that you won’t see your sale actually complete until some months later.”

Iain McKenzie, CEO of The Guild of Property Professionals, says: “These figures paint an arresting picture of the frenzy we saw towards the end of the full Stamp Duty holiday as house prices boomed with buyers rushing to get their key in the lock.

“Areas outside of London still continue to lead the way on house price growth, as people scour the country for more living space.

“Despite the winding down of the Stamp Duty holiday and more people feeling the pressure to return to the office, all the elements are still in place for house prices to remain higher than usual for the foreseeable future.

“With demand for properties still ever-present and estate agents across the country facing a smaller pool of homes to sell, many prospective buyers will also be sitting on their deposit until the perfect home comes along. This factor will keep prices higher in the long term.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “Prices went berserk as the Stamp Duty taper closed in. The pace of growth set in the North West is frankly astonishing. This is the last time this year, or even in our lifetimes, that you’ll see growth spurts like this in response to government support.

“Scenes like this are only possible in those areas starting from a lower base, and there’s a big question mark over how many of these buyers really made a saving. Amid fierce competition, there’s a good chance that many of them became so committed to a particular move that the financials were thrown out with the bath water. 

“Needless to say, as soon as July arrived, we entered a very different market, and some of this exuberance will have to unwind. London is probably most protected from that eventuality. Prices are still approximately double the national average in London but the capital hasn’t had its running shoes on like the rest of the country. 

“London remains the dark horse of the property market. It’s much harder to predict where it will go over the remainder of the year, though demand is certainly broadening out. The rental market is once again on fire, demand is spreading to a greater range of property types as the race for space fades and even the supercars are back in Knightsbridge.

“These new trends have been forming ever since the country had unlocking in its sights. The capital could well turn the tables on the rest of the country over the next 12 months.”

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, says: “The last gasps of the Stamp Duty holiday injected a sense of urgency into buying patterns with house hunters desperate to land the home of their dreams before the tax giveaway largely vanished.

“This data also shows the race for space is still in full swing with the relentless escalation of house prices continuing across the country, and areas not typically at the forefront suddenly finding their moment in the sun.

“Ultra-low interest rates and shrinking housing stock continue to fuel a red-hot market amid a stampede which some are now likening to the gold rush. The fever gripping the North West in particular is something to behold.

“And in London where growth has been more modest, agents are now bracing themselves for a return to full-throttle as investors from the Gulf return to the market with the UAE now on our amber list.

“A tremendous buzz is building in the capital and viewings from overseas investors are already beginning to soar with many wondering if we will witness the same double-digit growth in London that has already been recorded in other areas of the country.

“While we expect things to steady later in the year, there is nothing in this data to suggest the brakes will be applied heavily to what has become a run-away market.”