How The Pandemic Affected the UK Housing Market
Benjamin Thompson Kirk
The boom in the property market seen over the course of the pandemic was exacerbated by those buying houses specifically to renovate and sell on, at a profit, as quickly as possible. This process is known as ‘flipping’.
Of these properties, 75% achieved a sales price of more than they were bought for; the average profit made per sale was £48,190.
Impact of the Stamp Duty Holiday The stamp duty holiday, introduced in response to the pandemic, allowed buyers to save up to £15,000, after the Chancellor axed the tax on the
first £500,000 of a property’s price. In July 2021 the threshold was bought down to £250,000, and at the end of October 2021 the tax break ceased altogether.
What Will Happen Next? It is predicted that a lack of supply of properties coming onto the market will keep house prices high; some estate agents predict that prices will increase by 3.5% in 2022 and by 3% in 2023; they estimate that over one million property sales will be transacted in 2022 alone.
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Some estate agents predict that prices will increase by 3.5% in 2022 and by 3% in 2023; they estimate that over one million property sales will be transacted in 2022 alone.
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