A report from Rightmove the online property portal, has revealed a mini boom occurring that has pushed house prices up in England, Scotland and Wales to a new record high. This comes just before the new stamp duty holiday threshold changes meaning buyers will pay no stamp duty when buying a property under £500,000.
According to Rightmove the annual pace of property price inflation is at its highest since December 2016 at 3.7%. Properties that are coming to market have an average asking price 2.4% higher than just before lockdown in March 2020.
Rightmove’s report is based on properties for sale from 7th June to 11th July and differs from Nationwide’s latest index which saw property prices fall in June which is the first time in 8 years. Halifax also reported a fall in house prices on 4 consecutive months.
In comparison to last year, Rightmove has recorded 75% more buyer enquiries this year and expect these numbers to pick up even more once the stamp duty threshold increases.
The number of sales agreed 5 days after the stamp duty announcement rose to 35% from the same day last year, Rightmove data revealed.
This could just be 3 months pent-up demand but we suggest there is the added bonus of the stamp duty holiday as well as some people revaluating their lives after lock down and those working from home for a few months who have decided to make that move more permament.