Average asking prices for newly listed houses and apartments in Britain fell 1.7% in December, but activity was brisk for the remainder of the year as movers looked to secure deals. sales ahead of property purchase taxes being increased in April, property website Rightmove said on Monday.
Rightmove’s data is not seasonally adjusted and the fall in asking prices – which follows a 1.4% fall in November – is in line with the historical average decline for the end of the year, it said the company.
Compared to the previous year, asking prices increased by 1.4%. Rightmove’s December period runs from November 10th to December 7th.
The number of completed sales increased by 22% compared to the previous year, while demand from new buyers increased by 13%.
Seasonally adjusted data provided by mortgage lenders Nationwide and Halifax for November shows monthly price rises and the fastest annual increases in two years.
Tim Bannister, director of property science at Rightmove, said it was unclear whether the stamp duty tax increase would have an impact on activity next year.
“The stamp duty changes are a cloud over the market at the moment, with some groups much more affected than others, and therefore keen to avoid the extra charges,” he said.
From April, first-time buyers in England will pay stamp duty on properties costing 300,000 pounds ($380,000), instead of 425,000 pounds, other buyers will have to pay the tax from 125,000 pounds and a surcharge for second homes will also increase.
“A lower Bank Rate and lower mortgage rates early in the year would help stabilize the market and boost consumer sentiment and confidence,” Bannister said.
The Bank of England is expected to hold interest rates at 4.75% on Thursday and said future rate cuts would likely be gradual. On Friday, investors expected three quarter-point rate cuts from the BoE next year.
Last week, Prime Minister Keir Starmer’s Labor government, which came to power in July, announced a review of the planning system to speed up house building and boost economic growth.
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