7 October 2021
House prices rose at their fastest monthly rate since 2007 in September, increasing by 1.7% to £267,587 and by 7.4% year on year, the latest index from Halifax reveals.
This marked a turnaround after a three-month downward trend in annual inflation, which peaked at 9.6% in May.
Halifax calculates that house price increases over the period covered by the stamp duty holiday have far outstripped typical savings on the tax.
It says that in June 2020, the month before the stamp duty holiday began, the average house price was £239,317, meaning that a home mover would have faced a stamp duty bill of around £2,300.
By September 2021, average house prices were some £28,270 higher – more than 12 times greater than that initial saving.
Now, with the tax break over, a home mover would face a bill of nearly £3,400 for the same property, as with the average property price now £267,587, a buyer would be pushed into a higher tax bracket because a 5% rate applies on homes sold for between £250,001 and £925,000.