Experienced property solicitors in Stourport on Severn UK

The House price increase seems to be ever continuing. Almost every article in the press, or on television, seems to confirm that house prices are still continuing. I can recollect only one that indicated things are slipping back a little.

Personally, I would like to see a slow but steady rise which is sustainable rather than a dramatic upward surge which bubble then bursts. You also have to think about the young end of the market who are being pushed off the home buying ladder – if indeed they ever can get on it. If there is no “new blood” coming into the market it will inevitably stall higher up the ladder eventually.

A new report by the Resolution Foundation found that the current house prices boom was not caused by the stamp duty holiday but prices will keep rising by home preferences changing and pandemic related factors such as low interest rates (though it could well be argued that we have had historically low interest rates for some time – some of us remember the eye watering interest rates following out exit from the European Exchange Rate Mechanism over 30 years ago).

Views vary as the report thinks the Exchequer throughout all the 4 Nations lost about £4.4 Billion of taxes whereas the Treasury state that keeping the Housing market going was vital to the economy and benefitted purchasers by up to £15,000 per transaction protecting hundreds of thousands of jobs that rely on the property market.

HM Revenue and Customs have worked out that between 50 – 70 % of the cut for first time buyers led to higher house prices. In the year ending June 2021 the average UK home increased by 13.2% with Wales seeing the biggest increase. This makes housing investments very attractive – there are not many investments giving that sort of return. The Resolution Foundation think, however that this is somewhat false considering that while this may be partly the case, house prices abroad, including America and as far off as Australia have also increased without any such tax holiday.

The Report’s Authors conclude that “stronger forces were at play within the housing market over the past year such as enforced savings during lockdowns, changing housing preferences and super low interest rates… and transaction holidays have been problematic less because they were inflationary and more because they have been wasteful.”

Rural and semi-rural area have become more attractive and city life less so.

The Housing market, despite whatever is thrown at it, always seems to be resilient.

The above is generally interesting and probably, as ever, the true answer is somewhere between the two extremes. All this works to illustrate however why you need a professional who knows your local (and wider) market. HB121 have experienced property solicitors in Kidderminster and property solicitors in Stourport on Severn. We can help you – whether you are buying, selling, mortgaging or need any other property assistance contact HB121 Solicitors on 01562 702655 or www.hb121solicitors.co.uk