Photographer: Jason Alden / Bloomberg
Photographer: Jason Alden / Bloomberg
UK house prices fell in January as sellers tried to speed up discounted transactions before a temporary reduction in a sharp home purchase tax came to an end, although in any case many bids will miss the deadline. Rightmove.
The average asking price fell 0.9% a month, apparently to tempt investors into last-minute sales, said the UK’s largest property website. However, of the 613,000 agreements already underway, he expects about 100,000 to close after the March 31 cut, meaning they will face tax bills of up to £ 15,000 ($ 20,000) greater than that they would have.
While activity in the first few weeks of January usually sets the tone for the rest of the year, Covid-related market closures and holidays with stimulus taxes that increase the stimulus are likely to distort the figures on 2021.
Tim Bannister, director of property data at Rightmove, said the main difference between Britain’s first closure last year and what it finds now is that the real estate market was open this time, so “the Changed housing priorities can be met more easily. “
As more people work remotely and school their children at home, they have sought homes with more space (indoors and outdoors) raising the market after the initial pandemic shock despite the biggest economic downturn in three centuries. The number of sales agreed last year increased by 10th compared to 2019.
Matthew Smith, director of sales and rentals at Thornley Groves, Manchester, said the desire to increase in the suburbs is the main driver of sales.
“I don’t think the high levels of activity we’re seeing are due solely to the tax holidays,” he said. “People have simply been given the impetus to be mindful of moving house, which in turn has led to increased demand.”