House prices are on the rise, despite the end of the stamp duty holiday nearing. A shift in housing priorities as a result of COVID-19 could be the reason, as well as some buyers anticipating an extension to the stamp duty holiday.
According to Nationwide Building Society, the average house price rose by 0.7% to £231,068 in February, more than reversing January’s 0.2% drop.
The stamp duty holiday prompted many buyers to bring their purchase forward in order to benefit from the tax saving, so it was expected that annual price growth would soften before the stamp duty holiday ends next month.
One reason the property market has enjoyed some growth during the pandemic is that, with such drastic changes to the way we live our lives, many people have started to rethink what they want in a property.
A shift towards home working has given buyers the freedom to move out of big cities and into more rural areas, while many would now put a bigger garden and space for a home office at the top of their new home wish list.
What is the stamp duty holiday?
Introduced last summer, the stamp duty holiday offers a complete tax saving on properties costing up to £500,000 and a reduction on stamp duty for homes costing more than that. It was set to expire at the end of March, but it’s thought that it could be extended for three months in Rishi Sunak’s budget on Wednesday.
The chancellor is also expected to unveil a mortgage guarantee scheme that aims to help first-time buyers purchase a new home with as little as a 5% deposit on properties worth up to £600,000. The government will give lenders the guarantee they need to provide mortgages covering the remaining 95%. Details will be revealed on Wednesday.
If you’re looking to sell your home or find your dream property, the expert estate agents at Chimneypots can help. We have years of experience successfully selling properties across Dorset and Hampshire, as well as helping people find their perfect new home.