U.K. Property Market Resilient Despite Economic Challenges
Amid the pound’s value hitting an all-time low, soaring living costs, tax changes, the property market is surprisingly resilient. The average price of property coming to market rose 0.7%, equating to £2,587 (US2,762), this month to £367,760. The housing market continues to be extremely resilient even in the face of the economic headwinds that are stretching household finances. The rising cost of living is increasingly playing a role in some buyers’ considerations, as they look at their budgets and what they can afford. Demand has been softening over the last few months. It is in reference to the immediate and permanent changes to stamp duty land tax—the levy paid on property purchases across England and Northern Ireland—that were introduced by Chancellor of the Exchequer Kwasi Kwarteng. The threshold at which stamp duty begins for all home purchases has doubled, meaning there is no transfer tax on the first £250,000 of a home’s price, and there’s more relief for those taking their first step on the property ladder. First-time buyers will now pay no stamp duty up to £425,000—a rise from the £300,000 threshold previously in place—and can claim relief, or a discount, on anything above that up to £625,000. Buyers can expect to save between £1,501 and £2,499 across 15% of local home markets, and this saving will typically be between £501 and £1,500 across a further 13% of the market.
Tags : tax property market price property economic demand buyers stamp duty