No sign of stamp duty ‘cliff edge’ as property prices rise

| Marc da Silva

Residential property prices have increased by an average of £10,246 per property over the past 12 months, according to Zoopla’s latest house price index.

The large hike in prices has pushed more than 1.8 million properties into a higher stamp duty land tax (SDLT) bracket, the figures show.

UK property prices have seen their largest increase in value since October 2016, the data from Zoopla shows. The portal has also revealed that despite the stamp duty holiday threshold changing this week, there is no sign of the market “cliff edge” many experts feared.

Demand is still 55% higher than the average recorded in the more “normal market” of 2019.

With total listings down 24% year-on-year, property demand continues to be higher than supply across the nation.

Reflecting o the data, Kate Eales, head of regional agency at Strutt & Parker, said: “Time to sell has roughly halved since 2019 despite the stamp duty holiday extension coming to an end. In the past, properties that may have taken weeks to go under offer are now taking just days and we are seeing, in some of the hottest markets, properties going to best and final offers.

“The Welsh market has seen unprecedented levels of interest, both on the coast and inland, and we have a hot list of buyers waiting to see property come to the market, with some properties exchanging within 48 hours of receiving offers, and others selling for 25% above guide price.

“However it will be interesting to see whether these top performing regions continue in their growth, as they historically have lower average house prices compared to other regions and, as such, are likely to be driven by the stamp duty holiday. Despite the Stamp Duty holiday coming to an end, lifestyle changes during the past year are still a driving force in the market, and might outweigh the additional cost for many.”

The Yorkshire property market has witnessed a real uptick in demand since the onset of the pandemic, and that’s not set to wane even with the end of the SDLT deadline, according to Patrick McCutcheon, head of residential, Dacre, Son & Hartley.

He commented: “The Yorkshire property market has witnessed a real uptick in demand since the onset of the pandemic, “and that’s not set to wane even with the end of the SDLT deadline.  With rural and village locations in abundance, Yorkshire is certainly attracting movers both within and outside of the region.

“The proportion of prospective buyers from London and the south east who have opted to receive property opportunities has increased to almost 25%, with flexible working enabling more buyers to escape the capital in search of the countryside, without losing half their week to commuting.

“House price growth is currently running in the region of +10% compared to 2019; reduced choice of properties is only making buyers more determined. This growth is spread across all price brackets – including the plus million pound market, which has returned to form.”

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