Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
What’s going on in the UK Property Market?
Annual house price growth slowed a bit last month, but growth still hit double digits. In July, growth fell from 13.5% the previous month to 10.5%. Month on month, prices are down 0.5%, an unfortunate change after being up 0.7% in June.
The average house price in July was £244,229, down slightly from June’s average of £245,432.
The slight slowdown isn’t surprising given the significant growth experienced recently. On top of that, stamp duty (SDLT) relief coming to an end will likely play a part.
At the end of June, the SDLT nil rate band threshold decreased from £500,000 to £250,000 and at the end of September, it will be reduced even further to £125,000.
Pressure to act before the threshold was reduced caused many to rush to complete property transactions for higher priced properties. And for properties above the £250,000 threshold, the stamp duty savings dropped drastically from £15,000 to £2,500 at the beginning of July.
The impact of stamp duty
Thanks to the stamp duty changes, market transactions hit a record high of nearly 200,000 in June, about twice the number of transactions in a typical month before the pandemic hit last March. Along with shifting home priorities from buyers, the SDLT holiday also pushed up the number of higher priced properties being bought and sold.
Looking ahead
For the near future, demand will likely remain consistent. Despite SDLT relief being phased out, borrowing costs still remain low. Supply, however, is just not at the level that will sustain housing market activity so house prices will remain higher. Once there is no more relief, it’s more difficult to predict what will happen.
Of course, the performance and recovery of the economy will have an impact as well. If unemployment rises around the same time that government support wanes, even if people are still on the market for new homes befitting their new priorities, demand won’t remain at the same level.
Stay in the know
If you’re planning to buy or sell property this year, contact an adviser for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.
Check back next month
There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index July 2021.
Mortgages for Doctors and Dentists
Always remember to visit our site monthly for your regular update on the nation’s property prices.
If you’re planning to buy or sell property this year contact an advisor for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.