The Chancellor of the Exchequer, Rishi Sunak, temporarily lifted stamp duty tax on the initial £500,000 of property buys in July of last year, and in March, he extended the exception by a further three months to the furthest limit of June. The whirlwind of action before changes to stamp tax rules in England, Wales, and Northern Ireland made for the most active month since figures began being published in April 2005.
HMRC said the figures “captured significant impacts from forestalling activity by taxpayers”, with buyers bringing forward transactions to take advantage of government policy.
“In June, deals hit their most noteworthy month to the UK since practically identical figures were first gathered in April 2005.”
“Home loan rates are at record lows.”
Iain McKenzie, the Guild of Property Professionals CEO, said: “A lot of last month’s ascent is because of the extremely late scramble to take advantage of the stamp tax duty occasion. However, the occasion hasn’t completely slowed down yet, and we could, in any case, see a blast in regions with lodging estimated under £250,000.”
If you are having problems in understanding the reasons for the price hike, contact us at Legend Financial, because we are always ready to help.
References
Bloomberg. (n.d.). Retrieved from https://www.bloomberg.com/news/features/2021-07-01/world-s-fastest-property-price-surge-since-financial-crisis-sparks-bidding-wars
Stamp Duty Land Tax: temporarily reduced rates. (n.d.). Retrieved from GOV.UK: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
U.S. Investors Seek Bargains in U.K. Home-Building Industry. (n.d.). Retrieved from The Wall Street Journal: https://www.wsj.com/articles/u-s-investors-seek-bargains-in-u-k-home-building-industry-11626782400
UK house prices rise again amid record monthly sales. (n.d.). Retrieved from Reuters: https://www.reuters.com/world/uk/uk-house-prices-rise-again-amid-record-monthly-sales-rightmove-2021-07-18/
