Woodkirk Stone
Asking prices for UK homes rose 0.7% between mid-June and early July from the previous month, the biggest increase for the time of year since 2007 despite a reduction in a tax break for buyers on July 1, real estate site Rightmove said. .
The increase was compounded by a shortage of properties in the market and pushed average asking prices to an all-time high for the fourth consecutive month, Rightmove said.
Asking prices have increased 6.7% in the past six months.
June likely saw a record number of home sales as buyers in England and elsewhere in the UK rushed to pass the June 30 tax breaks deadline, said Tim Bannister, director of property data by Rightmove.
“This left potential buyers with the lowest selection of homes for sale we have ever seen, continuous price increases and affordability,†Bannister said.
Rightmove, which claims to advertise 95% of houses for sale in Britain, said the imbalance between supply and demand is likely to support the market.
Data was collected between June 13 and July 10.
UK house prices have risen since the coronavirus pandemic hit, with people working from home looking for larger properties and the government slashing the purchase tax.
The first 500,000 pounds of any real estate purchase in England or Northern Ireland was exempt from stamp duty until the end of June.
A tax-free allowance of £ 250,000 remains until the end of September.
A similar but smaller incentive in Wales expired on June 30.
Official data, based on completed transactions, showed UK house prices in the year through May rose 10%, matching their biggest increase since 2007.
The booming housing market helped soften the 10% drop in the economy last year, but widened wealth inequalities between homeowners and those without a home.
Separately on Monday, a survey showed UK consumer confidence returned to pre-pandemic levels during the April-June period, aided by the lifting of numerous social distancing rules.
The Deloitte report also found that 79% of respondents saved money during the pandemic.
Of these, 58% intended to spend more on vacations, meals, outings and clothes in the next three months.
The survey interviewed more than 3,000 people in Britain between June 18 and June 21.
Another survey found a slight drop in confidence among small businesses after delays in lifting coronavirus rules definitively, but growth expectations and hiring plans remained strong.
The Small Business Federation said 50% of small business owners expected business to improve in the next three months, compared to 32% who expected a deterioration.
The survey of 1,561 small businesses took place between June 24 and July 9.