Budget: Sunak announces stamp duty nil rate extension in March
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Interest rates for mortgages are currently at a historic low across the UK, however, this could soon change. With inflation rising across the country, the Bank of England has warned that interest rates could climb to combat inflation. Many buyers are now looking to purchase a property and get their mortgages approved before interest rates rise which is likely to be at the end of the year.
This second “deadline” is causing another stampede in an already heated property market.
The latest figures from property site Rightmove suggested that average house prices have surged by almost £6,000 in one month in all areas of the the UK.
The average asking price jumped by 1.8 percent or £5,983 in October to reach £344,445.
There seems to be high demand for homes in a low-supply market as Britons continue to hunt for more space in the wake of the coronavirus pandemic.
Further research from property concierge service Moveable found that 12 percent (1.9 million) of Britons rushed their property transaction due to the stamp duty holiday which ended at the end of last month.
The stamp duty holiday has helped contribute to the property market rush over the last 18 months as buyers rushed to complete their transactions before the threshold changed.
The rate returned back to £125,000 on October 1, 2021.
Meanwhile, 11 percent (2.3 million) Britons overpaid by thousands during their home move last year.
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Twenty percent (4.5 million) also didn’t shop around for the best deals when they moved house.
They instead chose the easiest option at every stage which can often be the most expensive.
On top of that, average house prices are rising faster than the average annual income.
The Rightmove House Price Index stated that the average UK house price is up 6.5 percent from October last year.
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Simon Bath, CEO of iPlace Global and creator of Moveable, said Britons face another potential “deadline” following the stamp duty holiday.
He said: “We have reached another crossroads in which following the stamp duty holiday, there is another potential deadline for Britons to prepare for.
“It seems likely that house prices will continue to rise before demand slows down, as Brits race to obtain lower mortgage rates.
“Therefore, it is more important than ever to save money wherever people have the opportunity, particularly on the move itself.
“Homebuyers must take the time to compare services and providers to get the best deal possible, as it’s just not an option anymore to pay over the odds during the move.”
According to Rightmove, the number of sales agreed was up by 15.2 percent in September compared with 2019.
Rightmove also reported that all market sectors and regions across the UK hit new record price highs in the same month.
This includes first-time buyer, second stepper and top of the ladder buyers.
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