237: Housing market strength continues
Navigation trail: / latestnews / archive / 237 - published: 20-11-06
The strong performance of the housing market continues as 2006 draws to a close, according to information provider, Rightmove. Indeed, average national asking property prices rose by a further 1.5% (£3,379) last month - the annual rate of increase now standing at 12.4%, with buyers being asked to pay an average of £24,478 more than a year ago.
Underlying demand and a shortage of supply continue to push up prices beyond market expectations, particularly in the south. Sellers in London are now asking prices 18.2% (£53,045) higher than a year ago.
However, it was in Yorkshire and the Humber where prices went up fastest from October to November, rising 3.8%. Or more than double the 1.5% average for England and Wales. Property prices rose in every region of England. Wales bucked the trend, declining by 0.1%.
Rightmove says the recent interest rate rise is likely to give little respite, as the main reason for price rises is the shortage of supply of suitable property being built in the right locations.
As a result of last month's £3,379 average rise in property values, the firm calculates the Treasury's potential annual stamp duty revenues will rise by £160 million. Now, for example, only 17% of properties offered for sale, are exempt from stamp duty, being below the £125,000 threshold.
On the other hand, between £125,000 and £250,000, where a 1% tax is levied, the majority of home buyers are potentially being caught. This particular bracket now relates to 52% of properties currently on the market.
Meanwhile, a third of properties are being marketed at over £250,000, where at least £7,500 has to be set aside for stamp duty. Tax rates of 3% are applicable on all sales between £250,000 and £500,000. Buyers above that level are in the highest band, where a 4% levy is charged.
Source:
Moneyextra.com