Despite the tapering off of the stamp duty holiday with only properties up to £250,000 now paying no stamp duty until the end of September, Nationwide has reported today that average UK house prices rose by 11% in the year to August 2021 and are up 13% since the pandemic hit the UK.
The average house prices in the UK is now £248,857 up 2.1% in a month from £244,229.
Why the rise when stamp duty holiday is ending?
Given that the stamp duty holiday only applies to property sales up to £250,000 and must be completed before 1/10/2021, it is a surprise that the average has increased despite a slowdown in £250,000+ property activity.
We suggest the rise is still driven by the lower priced end of the market which still has some impact higher up as people upsize powered by those joining the property ladder and pushing prices upwards.
That said, we believe the property market will slow for a period and will then move into yet another upward trajectory as wages increase due to lack of staff forcing employers to pay more. Inflation is on its way from all angles.