The asking price of a home in London has jumped £8,440 since the emergency stamp duty holiday was introduced last July, new data reveals on the day of the deadline.
Rishi Sunak’s tax break – which temporarily scrapped the levy on property worth less than £500,000 – benefitted 1.3 million buyers in the UK according to Rightmove, but closes today.
The policy also translated into a £15,000 saving for those purchasing homes above the £500,000 threshold.
This measure has pumped up asking prices across the country by £16,000 and has taken the average price tag in the capital from £641,854 to £650,294 (up 1.3 per cent).
Rightmove’s analyst Tim Bannister believes there is no drop off in sales activity even though the scheme will now taper out. The relief will now only apply to homes worth less than £250,000 until the end of September when the threshold will lower to £125,000.
The Chancellor’s scheme has courted controversy with industry voices claiming it has boosted prices to the detriment of first-time buyers.
First-time buyers will not pay stamp duty on properties priced less than £300,000, as was the case before the coronavirus pandemic.