UK house prices record highest historical growth in 17 years

Bayanalysis - House prices in Britain rose to 13.4% during June 2021 on an annual basis, recording 486 points, which is the highest rise in 17 years, specifically in November 2004, and even at all since 1992, despite the fact that the growth of housing prices in Britain is less than expectations, which touched 13.7%. The lowest value for house prices was in November 1992, which recorded 98.95 points, according to the UK's National Building Society.

On a monthly basis, UK house prices rose 0.7%, down from a 1.7% increase in May.

Expectations are that underlying demand is likely to remain strong in the near term as the UK economy takes off. Consumer confidence rebounded while borrowing costs remained low combined with a tight supply of homes in the market suggesting further upward pressure on prices.

Despite all the previous predictions, it is difficult to predict the expectations in the near term, specifically until the end of this year.

Robert Gardner, chief economist at Nationwide, said activity in the real estate market will almost inevitably decline for a while after the stamp duty holiday that is imposed at the end of September, given the strong incentive for buyers around the tax break.

What are the stamp fees؟

Stamp duty levied in England and Northern Ireland and is valued between 3% and 15% according to the price of homes in Britain, which ranges between 40 and 1.5 million pounds.

And the British government issued a statement in the summer of last year 2020 with a temporary reduction of stamp fees on purchases made before March 31, 2021, in addition to eliminating stamp fees on homes owned by a person for the first time, amounting to half a million pounds, and then extending an extension The exemption is due to the end of June, while homes priced at 125,000 pounds and less have been exempted until the end of next September.

The term first-time homeowner applies to people who have never owned a home in any residential property in the UK or anywhere in the world and who have subsequently purchased a home in the UK as their main residence.