We are already seeing signs that the Newark property market starting to cool off. House prices dipped 0.5% in June as the stamp duty holiday began to be phased out, according to the Halifax. Prices rose 8.8% over the year, leaving average prices still more than £21,000 higher, following a broadly unprecedented period of gains. The lender said it was “important to put such a moderate decrease in context.”
The Government removed the need to pay stamp duty on certain properties throughout much of the pandemic. In the last year the housing market has been stimulated by stamp duty holidays introduced by the government to boost the property market. Now a 5% tax kicks in at £250,000 for properties up to £925,000. From October rates are due to return to normal which means the point homebuyers start paying stamp duty will revert back to £125,001.
“This may be the first sign house price growth is starting to run out of steam, but this slight cooling does not mean prices will come crashing back down to where they were last summer,” said Lucy Pendleton of estate agents James Pendleton. She said some buyers are holding off marketing their property because they cannot see anywhere to move to: “That creates a vicious cycle of low supply and consequently causing intense up-bidding on the most desirable properties.”
North London estate agent Jeremy Leaf said despite the beginning of the end to the stamp duty holiday there was still strength in the market: “We don’t expect this new balance between supply and demand to change much over the next few months, particularly if economic growth can make up for the ending of the furlough scheme.”
With the Newark property market starting to cool off you may need to get a fair price for a fast deal, so contact us and we will be able to help you move on quickly.