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House prices to rise by 7% after Stamp Duty rise?
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Economists have today warned that buy-to-let lenders seek to avoid paying additional stamp duty from next April could be the catalyst for a 7% rise in UK house prices.
This warning comes despite a fall in property prices during November.
Rises
IHS Global Insight said that it expects a substantial rise in the price of housing in the coming months. The group forecasts increases of between 6% and 7% during 2016.
The Chancellor shocked the industry by announcing the 3% stamp duty hike on buy-to-let and second homes during last month’s Autumn Statement. IHS feel that these changes, ‘could lead to an increase in housing demand and exert upward pressure on prices as prospective buyers look to beat the increase’ in the short term.[1]
House prices to rise by 7% after Stamp Duty rise?
However, the Halifax reported that property values actually slipped by 0.2% between October and November. This said, prices in the three months to the end of November were 9% higher than at the same time in 2014.
Average property prices last month totalled £204,552.
Martin Ellis, Halifax housing economist, commented, ‘the increasingly acute imbalance between supply and demand is causing prices to rise at a robust pace.’[]
[1] http://www.standard.co.uk/business/house-prices-could-rise-7-thanks-to-stamp-duty-hike-a3132451.html
