UK home prices increase in July
British home prices accelerated in July after a drop in June. This came after pandemic-driven demand for larger homes weakened the impact of a reduced tax break for buyers, mortgage lender Halifax said on Friday.
House prices in July nudged 0.4% higher, compared with a monthly fall of 0.6% in June.
In annual terms, prices were 7.6% higher than in July 2020, the smallest increase since March.
Russell Galley, Halifax managing director, expected the market to settle due to the recent purchasing surge fueled by the tax benefit.
As part of the incentive program, exemptions from the stamp duty tax were given to the first 500,000 pounds ($693,850.00) of any property purchase in England or Northern Ireland until the end of June. It was scaled back to 250,000 pound until the end of September.
However, home shortage in the market is seen to support the prices.
Galley noted that the economic recovery and higher consumer confidence suggested annual price growth. Meanwhile, slowing, he said, would remain well into positive territory by the end of the year.