The average price of a property coming to the UK market has risen by £2,587 (+0.7%) this month, bringing the national average property price to sit at £367,760 as buyer demand increases to 20% higher than the five-year average.
Property prices in the UK have risen by £2,587 in the last month, with the average property price now reaching £367,760 and the annual price growth reaching +8.7%. As property prices have risen, buyer demand across the country has also increased to 20% higher than the pre-pandemic five-year average, with the newly announced stamp duty tax cut expected to stimulate even more demand well into the new year.
The new stamp duty tax cut announced in Friday’s mini budget has raised the stamp duty thresholds from £300,000 to £425,000 for first-time buyers and from £125,000 to £250,000 for all other purchases, meaning 66% of first-time buyers are now exempt from paying stamp duty on their house purchase and a third of all properties (33%) are now completely exempt from stamp duty in England, compared to just 7% before the tax cut.
“Friday’s announcement is likely to stimulate some more demand. If it does lead to a big jump in prospective buyers competing for the constrained number of properties for sale, then it could lead to some unseasonal price rises over the next few months. … With more buyer demand we would also expect that the current trend of more properties coming to market will continue, offering more choice for buyers.” Tim Bannister, Rightmove’s Director of Property Science.‘‘
While the number of properties coming to market has risen back to pre-pandemic levels and there is more choice in the market for prospective buyers, buyer demand is still high as those in the market look to secure a purchase before the end of the year.
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