Rush to avoid stamp duty hike sends house prices to new high
THE average price tag on a home leapt to a record high of more than £307,000 in April as a last-minute rush of buy-to-let investors energised the market, a property website has reported.
House prices have risen as people rush to avoid the impending stamp duty hike
Across England and Wales, sellers are typically demanding £307,033 for a property – £3,843 more than in March – Rightmove claimed.
On April 1, a three percentage point hike in Stamp Duty was imposed on those purchasing buy-to-let properties.
Estate agents have previously reported dealing with a bottleneck of investors rushing to push sales through before the tax increase.
Prices are up an average of £3,843 on last March according to new figures
Rightmove said the average price of a typical buy-to-let property – one or two bedroomed – dipped in April by £2,686 month-on-month to reach £182,926, as investors' interest in the market got more subdued.
But the knock-on effect of the earlier rush of investors has pushed up the asking prices for properties higher up in the chain, as it has unleashed a wave of “trader-uppers”, Rightmove said.
A 3% hike in Stamp Duty was imposed on those purchasing buy-to-let properties in April
The previous rush of interest in buy-to-let properties before the April 1 deadline has enabled people selling these homes to trade up to bigger properties.
This has created stronger demand for properties higher up the ladder – in turn pushing the asking price up.
Meanwhile, the month-on-month fall in the asking price of a typical buy-to-let property could also now create further opportunities for first-time buyers, as they also tend to hunt for homes with two bedrooms or fewer.