Forecasts by estate agent Hamptons have found that house prices are set to continue rising by 3.5% a year in Great Britain between 2022 and 2024.
What is causing house prices to increase?
Predictions have found that more homes will be sold in 2021 than any other year since 2007. This record increase in activity has apparently been caused by families searching for larger homes with gardens and more space to work, as working from home becomes more normal. Furthermore, it was found that Covid-induced changes such as remote working are likely to cause people to move home more frequently than in pre-pandemic times. House price growth in Great Britain is forecast to be 3.5% in 2022, 3% in 2023, and 2.5% in 2024, a cumulative increase of 13.5% from the start of 2021 to the end of 2024. This large increase in house prices will make it increasingly difficult for first-time buyers to get on to the property ladder. Which will most likely result in people renting for longer or even their entire lives.
Is the end of the stamp duty land tax holiday cooling down the market?
In June of this year, many homebuyers moved quickly to complete the purchase of their new home before the Stamp Duty Land Tax holiday was tapered on 30 June. This resulted in house sales falling by nearly 66% in July. But, more recent data has indicated that the property market is beginning to boom again despite the fact that the Stamp Duty Land Tax Holiday ended on 1 October, returning to its pre-pandemic level of £125,000. Halifax and Nationwide both reported that property prices increased by 0.7% and 2.1% respectively in August. Therefore, despite the fact that property sales decreased, the average price of property still increased overall.
How can we help?
At Hawsons we have a dedicated team of property and construction accountants at our offices in Sheffield, Doncaster, and Northampton.
Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.
Our in-house tax team have advised in many aspects of taxation specific to the property investor including in the areas of VAT, Capital Allowances, Income, and Corporation Tax and Capital Taxes.
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