Spiralling house prices push millions into higher stamp duty bracket
Spiralling house prices have pushed 4.3m households into a higher stamp duty bracket since March 2020, according to the latest research.
The average price of a home has skyrocketed by £29,000 to £249,700 since Covid-19, spurred in part by a city exodus and the rush to get deals done amid the pandemic-era stamp duty holiday.
While the race for space saw London house prices soar, flat prices alone have climbed two per cent – the equivalent of £6,000 – since the pandemic began, Zoopla’s House Price Index revealed.
As Covid-19 recedes, city centres such as London have seen a wave of domestic and international demand, with Kensington and Chelsea seeing the biggest increase in homes listed for sale over the last month – compared with a 3.4 per cent increase in Greater London.
“Buyer demand has been very strong ever since the end of the first lockdown in 2020, and the start of this year has been no exception,” said Gráinne Gilmore, Zoopla’s head of research.
“While homeowners who make a move will see the benefit from increased property values when they sell, new entrants to the market will have to find additional finance to fund a move – meaning the reliance on the ‘Bank of Mum and Dad’ is likely to increase among first-time buyers.”