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Halifax House Price Index: Stamp Duty Holiday Causes House Price Spike

According to data from the latest edition of the UK’s longest-running monthly house price series, the average cost of a home in the UK is now nearly £30,000 higher than it was before the Stamp Duty holiday in July 2020.

Figures from September 2021’s Halifax House Price Index reveal that the average cost of a UK home is now £267,587, making for a 7.4% increase from this time last year. Most importantly, the stamp duty holiday has seen prices rise on average by £28,270 in just over 12 months.

Commenting on the results, Russell Galley, Managing Director, Halifax, said: “UK house prices rose by 1.7% in September, adding more than £4,400 to the value of the average property. The rate of monthly growth was the strongest since February 2007, pushing year-on-year house price inflation up to 7.4%. […] The price of an average house is now as expensive as it has ever been, standing at just over £267,500.”

Despite the end of the stamp duty holiday causing a surge in demand, Russel is keen to stress that England’s ‘race for space’ was more affected by the changing attitudes of homebuyers post COVID-19.

Russel clarifies: “Looking at price changes over the past year, prices for flats are up just 6.1%, compared to 8.9% for semi-detached properties and 8.8% for detached. This [percentage rise] translates into cash increases for detached properties of nearly £41,000 compared to just £6,640 for flats.”

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