House price inflation in Newark seems to be dropping according to the latest statistics as reported by Lincolnshire Live. This can only be as a result of the rapidly approaching Stamp Duty Holiday deadline.
The average UK house price fell by £5,000 in April after reaching a record high in March, according to official figures.
The typical property value was around £251,000 in April, following a peak of £256,000 on average in March, Office for National Statistics (ONS) figures show. However, the average house price in April was still £20,000 higher than a year earlier. The annual rate of house price growth slowed in April to 8.9%, from 9.9% in March. The ONS suggested that an original March stamp duty holiday deadline, which was later extended, may have inflated the house price figures for that month. As the tax break was originally due to conclude at the end of March, it is likely that this inflated March’s average house prices as buyers rushed to ensure their house purchases were scheduled to complete ahead of this deadline, the report said.
It pointed to HM Revenue and Customs (HMRC) house sales figures showing around 183,170 transactions took place in March – the highest on record. But in April there were around 117,860 sales – a fall of more than a third (36%).
The stamp duty break in England and Northern Ireland will remain fully in place until the end of June and then be tapered until October 1, when it will revert to normal levels. Meanwhile the tapering refers to a reduction in the price of the property where SDLT applies, currently £500,000 but reducing to £250,000 from July until October.
It will be interesting to see what happens to the marketplace in October when we are back to normal. By then the furlough scheme will have finished many people may be confronted with a reducing property market and no job prospects.
No doubt house price inflation in Newark and the rest of the region will be heading south and we will revert to a buyer’s market which is very different to the last year or so.
If you are looking for a fair price for a fast sale, then contact us and we will be on the case straight away.