UK home costs hit a brand new document excessive in June as consumers scrambled to finish purchases previous to the winding down of a stamp responsibility vacation, official figures have confirmed.
The common value hit £266,000, up by £31,000 or 13.2% on the identical month final yr – the very best proportion rise since November 2004, in accordance the Workplace for Nationwide Statistics (ONS).
It confirmed comparable knowledge for June reported by lender Nationwide – which has additionally extra just lately discovered that the market started to cool in July following the stamp responsibility adjustments.
The brand new excessive for home costs surpasses a earlier document of £256,000 seen in March.
A tax break introduced final summer time meant consumers in England and Northern Eire wouldn’t should pay any stamp responsibility on properties price as much as £500,000.
It was credited with reviving the housing market after exercise slumped through the first lockdown although critics level out that the increase offered to costs has made getting on to the housing ladder much more unaffordable to many.
The market noticed a famous spike earlier this yr with the tax vacation as a result of finish in March but it surely was then extended, with the £500,000 ceiling lowered to £250,000 from 30 June and returning to its standard cap of £125,000 on the finish of September.
Comparable insurance policies in Scotland and Wales, with thresholds of £250,000, led to March and June.
Mike Hardie, ONS head of costs, stated: “In June, UK home costs noticed their highest annual development since 2004.
“This determine, nevertheless, was boosted by massive month-to-month development, with a rush to finish purchases earlier than adjustments to the stamp responsibility vacation got here into impact on the finish of June.”
The ONS stated common costs in June elevated by 13.3% over the yr in England to £284,000 whereas in Wales they climbed 16.7% to £195,000, in Scotland by 12% to £174,000 and in Northern Eire by 9% to £153,000.
London noticed development of 6.3% – persevering with to see the bottom stage of regional home value will increase for the seventh month in a row, although its common value of £510,000 stays nicely forward of others.
The quickest price of development was in North West of England, the place costs climbed by 18.6% to only above £200,000.