Since the pandemic we have seen historic rises in house prices nationwide, but what is the reason behind this?
Since the pandemic the UK has seen house prices, in general, increase. Property values are up 10.2% from the previous year which happens to be the fastest annual growth in the last 14 years.
This boom in property purchases has been described as ‘the race for space’. The pandemic has caused a lot of people to either work from home, meaning they require more space to work in or moving to sub-urban and rural areas has become more popular to escape from busier areas. Evidence has also shown that many people has also reassessed their priorities, including where they want to live. This interest in properties outside of main cities has seen a drive elsewhere.
Another reason for the rise in house prices during the pandemic is due to the Stamp Duty holiday.
Stamp duty is the tax that is paid on the property purchases. In June 2020 buyers haven’t had to pay stamp duty on the first £500,000 of the purchase price. The stamp duty holiday was designed to boost the property market to help people to buy if peoples finances were affected by Covid.
Have you been affected by house prices? Next week we will dive a little deeper into future predictions and what to expect next.
