High rates of growth due to the stamp duty holiday have pushed the average house price in 25 areas of England above the final holiday threshold of £250,000, according to new research
The average house price in parts of Devon has increased more than in any other part of England.
According to new research, high rates of growth due to the stamp duty holiday have pushed the average house price in 25 areas of England above the final holiday threshold of £250,000.
West Devon saw the highest rise, closely followed by North Devon, where property prices soared 22.7% and 20.5% respectively.
In West Devon, the average house price in July 2020 was £249,541 at the time the initiative was launched. Since then, it has shot up to £306,203.
In North Devon, the average house price in July 2020 was £237,552, compared to £286,342 today.
The effect of stamp duty holiday has also been seen in Torridge, where property prices jumped by 16.8% – the sixth highest rise in the country – with the average purchase increasing from £229,599 to £268,248.
While the first extension of the stamp duty holiday has now ended, there is still the opportunity of a stamp duty free purchase on homes up to £250,000 until the end of September. However, in areas where average house prices have been pushed above this threshold, the intended benefit has now been nullified.
Ben Taylor, CEO of estate agents, Keller Williams UK, who conducted the research, said: The stamp duty holiday has saved a huge number of buyers quite a considerable sum on their purchase and even the staggered deadline on purchases up to £250,000 is set to see this continue right the way through until the end of September.
However, the consequence of this property market adrenaline shot has been some pretty insane rates of house price growth up and down the country. Unfortunately, this scenario is all too familiar and we’ve seen time and time again how stimulating demand without addressing supply can ironically be detrimental to those these initiatives are supposed to help, he said.
Founder and CEO of GetAgent.co.uk, Colby Short, added: It’s probably fair to say that while an extension was welcomed, the stamp duty holiday is starting to linger over the market like a bad smell.
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