By Legal Futures Associate Search Acumen
Average UK house prices grew by 8% over the year to July 2021, down from 13.1% in June, with the average price of £256,000 standing £19,000 higher than a year earlier.
Andy Sommerville, Director at Search Acumen, comments:
“The falling rate of house price growth in July is a sign of slowing sales momentum as the stamp duty rush fades, but let’s not forget an 8% annual rise is still significant by any normal standards. Buyers may have less incentive to secure a tax discount, but the final stamp duty sprint is well underway to make a saving before the threshold rules reverts from £250,000 to its pre-pandemic status quo.
“We expect decelerating prices to be little more than a pause for breath, and there is little prospect of any significant correction on the horizon. Household savings, low interest rates and the race for space look set to keep prices elevated long after the stamp duty holiday ends.
“The housing market looks set to emerge from the pandemic as one of the higher performing areas of the economy. Savvy property firms now have an important window of opportunity to harness the efficiencies technology has created before the next flurry of transactions.
“Whether the market is working for everyone is quite another matter, as the property ladder has rarely looked steeper from the bottom. The challenges to build genuinely affordable homes, improve the planning and tax systems and implement technological improvements to the transaction process are fundamental to post-pandemic prosperity.”