New figures published this week have revealed high levels of confidence in Britain’s property and mortgage market for the beginning of this year. The data, published by Mortgage Introducer, revealed that the price of properties coming on to the market for the first time were up 1.6 per cent this month, and this had also corresponded with an increase in online searches for new properties. However, analysts warned that this new confidence could be in danger from two main factors soon to impact on the market. With the 1 per cent stamp duty exemption for first-time buyers taking out mortgages on properties worth from £125,000 to £250,000 set to end in a few days time and a 3 per cent average increase in the asking prices of terraced houses and flats the standard market for the first-time buyer. Some 40 per cent of all sellers in the UK property market are selling homes worth between £125,000 and £250,000, which reveals the potential scale of any downturn in the sector caused by the end of the stamp duty exemption. Property analyst Keith Osborne of whathouse.co.uk warned that “there has been an increase in first-time buyer activity over recent months but we’re concerned that the market is set to slow again. The end of the Stamp Duty exemption will add between £1,250 and £2,500 to the cost of buying a home for first-time buyers, he noted. With prices already higher than a year ago, it simply represents several thousand pounds more that people need to find to get onto the property ladder.”
Upbeat Property Market to be Hit Hard by End of Stamp Duty Exemption?
Published on 16 February 2020
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