As movers sought to close deals before property purchase taxes increased in April 2024, activity was strong for the season, according to Rightmove, a real estate website, which reported that average asking prices for newly listed homes and apartments in Britain dropped 11.7% in December.
The asking price decline, which came after a 1.4% decline in November, was consistent with the historical average decline for the year’s end, according to Rightmove, which claims that its data is not seasonally adjusted.
Compared with a year earlier, asking prices were 1.4% higher. Rightmove’s December period ran from November 10 to December 7.
The number of agreed sales was 22% higher than the previous year while the demand for new buyers rose by 13%.
Nationwide and Halifax, two mortgage lenders, released seasonally adjusted data for November that showed monthly price increases and the fastest annual increases in two years.
The precise impact of the stamp duty tax increase on activity in the upcoming year is uncertain, according to Tim Bannister, director of property science at Rightmove.
“The stamp duty changes are a cloud over the market at the moment, with some groups much more impacted than others, and therefore keen to avoid the additional charges,” he said, as reported by Zawya.
In England, stamp duty on properties costing 300,000 pounds (USD 380,000) will be paid by first-time buyers starting in April instead of 425,000 pounds. Other buyers will also be required to pay tax starting at 125,000 pounds, and there will be an additional tax surcharge for second homes.
“A Bank Rate cut and some mortgage rate falls early on in the year would help to settle the market and provide a boost to sentiment and consumer confidence,” Bannister said.
In addition to stating that future rate cuts would probably be gradual, the Bank of England is predicted to maintain interest rates at 4.75%.