UK house prices jump above £250000 stamp duty threshold

UK house prices have jumped by the highest amounts in six year. Today the average property price is £251,964, which is £16,223 more than this time in 2013. According to Rightmove.co.uk, this year’s house price increase is the biggest year-on-year improvement since November 2007.

Mile Shipside, the director of Rightmove commented: “The shortage of properties on the market and pent up buyer demand is helping to push prices over that £250,000 level. It does mean that moving is more expensive and as well as higher prices, more buyers are now having to pay additional stamp duty as well.”

February’s house sale stats show that average house prices rose by 3.3% over last months. January represented a 1% increase over December, so the trend is positive for home owners looking to move. The number of new properties listed on Rightmove’s site also increased by a massive margin over this time last year, with an 18% rise recorded over the same time 12 months ago.

In the south, where the demand is highest, the amount of new builds isn’t keeping up with the national average as London has only had a 15% increase, the South East has seen a 13% rise and the South West, just 10%. The consequence of this could be the so-called “housing bubble”.

Shipside disagrees: "You get a bubble when people suddenly lose confidence, and that tends to be an economic crisis, and at the moment there doesn't appear to be anything like that on the horizon.”

The Bank of England pledge that they will only “make adjustments” when “sustainable growth in jobs, in incomes and in spending” happens is also good news for home owners. The BoE’s governor Mark Carney also said that “We can responsibly take our time and only adjust interest rates once more slack has been cut.”

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