Latest news with #ElliottJordanDoak
Yahoo
a day ago
- Business
- Yahoo
House price inflation accelerated in June as stamp duty disruption eases
House price inflation accelerated last month as growth in rental prices eased back, according to official figures. The average UK house price increased by 3.7% to £269,000 in the 12 months to June. The Office for National Statistics (ONS) revealed an uptick in price growth after a 2.7% rise was reported in the 12 months to May. It comes amid a backdrop of cooling interest rates, which dropped again to 4% earlier this month. The acceleration comes after price inflation was impacted by changes in stamp duty, with the threshold at which movers pay the tax decreasing from £250,000 to £125,000 at the end of March. Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said: 'House prices are recovering quickly from the disruption caused by the hike to stamp duty in April. 'Month-to-month house price inflation can be volatile at the best of times, so the sharp gains in house prices in May and June could be partly undone by a fall in July's data. 'But cutting through the noise, we think fundamental housing demand remains solid, indicating that house prices can continue to rise steadily over the course of the second half of 2025.' Average house prices increased to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales, and £192,000 (5.9%) in Scotland, in the 12 months to June. Meanwhile, average UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July, the statistics body said. Average rents increased to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, in the 12 months to July. ONS head of housing market indices Aimee North said: 'House price annual inflation continues to pick up with the average UK house price now at around £269,000. 'Annual private rents inflation has slowed across the whole of the UK for the seventh consecutive month.' Jean Jameson, chief sales officer at Foxtons, said: 'July brought a steady pace of activity, even as the summer holidays took some buyers and sellers out of the market. 'That said, well-priced homes, especially one and two-bed flats where supply is strongest, continued to attract interest. 'We've also seen an encouraging shift in sentiment following the recent base rate cut, which should support a pick-up in activity as we move towards the autumn.'
The Independent
a day ago
- Business
- The Independent
House price inflation accelerated in June as stamp duty disruption eases
House price inflation accelerated last month as growth in rental prices eased back, according to official figures. The average UK house price increased by 3.7% to £269,000 in the 12 months to June. The Office for National Statistics (ONS) revealed an uptick in price growth after a 2.7% rise was reported in the 12 months to May. It comes amid a backdrop of cooling interest rates, which dropped again to 4% earlier this month. The acceleration comes after price inflation was impacted by changes in stamp duty, with the threshold at which movers pay the tax decreasing from £250,000 to £125,000 at the end of March. Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said: 'House prices are recovering quickly from the disruption caused by the hike to stamp duty in April. 'Month-to-month house price inflation can be volatile at the best of times, so the sharp gains in house prices in May and June could be partly undone by a fall in July's data. 'But cutting through the noise, we think fundamental housing demand remains solid, indicating that house prices can continue to rise steadily over the course of the second half of 2025.' Average house prices increased to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales, and £192,000 (5.9%) in Scotland, in the 12 months to June. Meanwhile, average UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July, the statistics body said. Average rents increased to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, in the 12 months to July. ONS head of housing market indices Aimee North said: 'House price annual inflation continues to pick up with the average UK house price now at around £269,000. 'Annual private rents inflation has slowed across the whole of the UK for the seventh consecutive month.' Jean Jameson, chief sales officer at Foxtons, said: 'July brought a steady pace of activity, even as the summer holidays took some buyers and sellers out of the market. 'That said, well-priced homes, especially one and two-bed flats where supply is strongest, continued to attract interest. 'We've also seen an encouraging shift in sentiment following the recent base rate cut, which should support a pick-up in activity as we move towards the autumn.'
Yahoo
19-06-2025
- Business
- Yahoo
House prices sink in wake of stamp duty raid
House prices in the UK fell at their sharpest pace in nearly four years after a temporary cut to stamp duty for cheaper properties came to an end. Between April and March, the average UK property dipped 2.8pc in value to about £265,000, according to the Office for National Statistics (ONS). On April 1, the stamp duty discount ended, meaning the threshold at which buyers start paying the levy was reduced to £125,000 from £250,000. For first-time buyers in England, the threshold for not paying stamp duty was also reduced from £425,000 to £300,000. It is the steepest decline in monthly house prices since July 2021 when house prices also fell after another stamp duty holiday finished in June that year. Elliott Jordan-Doak, a senior UK economist at Pantheon Macroeconomics, said: 'April was the first month that completed mortgages were subject to the higher stamp-duty costs, but we think the fall in house prices was driven by an unwind of activity brought forward, rather than higher taxes hitting demand.' He added that the slowdown in prices is 'expected to be brief' as the housing market normalises in the coming months. London was the only region in England to report an increase in house prices between April and March, with prices rising by 2.3pc in the capital. By contrast, the North East recorded the largest monthly slump as house prices fell 7.4pc. Annual house price growth slowed to 3.5pc in April, down from 7pc in March as home buyers rushed to complete their purchases before the tax holiday came to an end. The stamp duty reduction was introduced by Liz Truss in her mini-Budget in September 2022, but was scrapped just weeks later by Jeremy Hunt in his autumn Budget. The latest house price data comes as stubborn inflation continues to cause headaches for the Bank of England. The Bank's Monetary Policy Committee (MPC) is expected to hold rates at 4.25pc on Thursday, dashing hopes for prospective buyers hoping for a reduction in borrowing costs. Last month, the MPC voted to cut the bank rate by 0.25 percentage points from 4.5pc to 4.25pc. However, traders have priced in just one more cut in 2025. Ashley Webb, UK Economist at Capital Economics said he expects 'housing transactions to recover to their pre-pandemic levels and house prices to reach new highs even though mortgage rates will remain higher over the next few years than before the pandemic'. Mr Webb said the strong demand from homebuyers is expected to be supported by borrowers increasing the length of their mortgage term, supporting a continued rise in prices. 'Overall the increase in mortgage terms and looser lending standards has led to a shift in the relationship between housing transactions/prices and mortgage rates that probably has a bit further to run,' he said. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
18-06-2025
- Business
- Telegraph
House prices fall at sharpest pace in four years in wake of stamp duty raid
House prices in the UK fell at their sharpest pace in nearly four years after a temporary cut to stamp duty for cheaper properties came to an end. Between April and March, the average UK property dipped 2.8pc in value to about £265,000, according to the Office for National Statistics (ONS). On April 1, the stamp duty discount ended, meaning the threshold at which buyers start paying the levy was reduced to £125,000 from £250,000. For first-time buyers in England, the threshold for not paying stamp duty was also reduced from £425,000 to £300,000. It is the steepest decline in monthly house prices since July 2021 when house prices also fell after another stamp duty holiday finished in June that year. Elliott Jordan-Doak, a senior UK economist at Pantheon Macroeconomics, said: 'April was the first month that completed mortgages were subject to the higher stamp-duty costs, but we think the fall in house prices was driven by an unwind of activity brought forward, rather than higher taxes hitting demand.' He added that the slowdown in prices is 'expected to be brief' as the housing market normalises in the coming months. London was the only region in England to report an increase in house prices between April and March, with prices rising by 2.3pc in the capital. By contrast, the North East recorded the largest monthly slump as house prices fell 7.4pc. Annual house price growth slowed to 3.5pc in April, down from 7pc in March as home buyers rushed to complete their purchases before the tax holiday came to an end. The stamp duty reduction was introduced by Liz Truss in her mini-Budget in September 2022, but was scrapped just weeks later by Jeremy Hunt in his autumn Budget. The latest house price data comes as stubborn inflation continues to cause headaches for the Bank of England. The Bank's Monetary Policy Committee (MPC) is expected to hold rates at 4.25pc on Thursday, dashing hopes for prospective buyers hoping for a reduction in borrowing costs. 'New highs' Last month, the MPC voted to cut the bank rate by 0.25 percentage points from 4.5pc to 4.25pc. However, traders have priced in just one more cut in 2025. Ashley Webb, UK Economist at Capital Economics said he expects 'housing transactions to recover to their pre-pandemic levels and house prices to reach new highs even though mortgage rates will remain higher over the next few years than before the pandemic'. Mr Webb said the strong demand from homebuyers is expected to be supported by borrowers increasing the length of their mortgage term, supporting a continued rise in prices. 'Overall the increase in mortgage terms and looser lending standards has led to a shift in the relationship between housing transactions/prices and mortgage rates that probably has a bit further to run,' he said.
