Today, Halifax released their latest House Price Index which revealed the stamp duty changes, along with other elements, have had a dramatic impact on house prices.
Average house prices reached a record high of £253,374 in December 2020 and Russell Galley, the Managing Director at Halifax, commented on the causes: “Average house prices rose again in December, stretching the current run of continuous gains to six months.
“However, the monthly rise of 0.2 percent was the lowest seen during this period and significantly down on the one percent increase in November.
“The average house price was therefore little changed, but nonetheless still reached a fresh record of £253,374.
“2020 was a tale of two distinct halves for the housing market. Following a strong start, the first half was dominated by the restrictions on movement due to COVID-19, and prices were subsequently down 0.5% at mid-year as the market effectively ground to a halt. However, when the market reopened, prices soared as a result of pent-up demand, a desire amongst buyers for greater space and the time-limited incentive of the stamp duty holiday.”