Property market cools despite 7.6% increase

Published: 24/08/2021 By Musgrove & Co

Property market cools despite 7.6% increase

According to Halifax, the property market will likely cool due to the end of the stamp duty holiday and a shortage in available homes.

The annual growth which saw a huge 7.6% rise, has now dipped 8.7% in June. This means that now the average house price is £261.221 up by 04.% in July. With Wales experiencing the highest rises of 13.8%, while the lowest 2.5% were in London.

Russell Galley, managing director of Halifax, said: "This easing was somewhat expected, given the strength of price inflation seen last summer, as the market began its recovery from the first lockdown and with activity supported by the start of the stamp duty holiday.

Galley added that instructions "for sale" were now falling due to the shortage of properties, and this should keep prices from falling too notably due to the low cost of borrowing and continued strong homebuyer demand.

June 2021 was logged as the busiest month for mortgage completions since 2008. Buyers were very much driven by the race to avoid stamp duty. Whilst post lockdown changed the buying requirements and buyers were keen for more space.

Emily Evans, speaking on award-winning builder Andy Stevens' podcast build it in June, said: "They can't continue to rise. We've had a completely false property market because of the stamp duty holiday. In the coming months, we'll see prices falling between potentially 3-5%."

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