Latest data released by UK Nationwide Building Society - 28 July 2021
- Prior +0.7%
- House prices +10.5% y/y
- Prior +13.4%
Slight delay in the release by the source. A pullback in house prices as activity looks to moderate a little in the UK housing market. It looks like the expiration of the stamp duty holiday is taking some sting out of the market for now. Nationwide notes that:
The modest fallback in July was unsurprising given the significant gains recorded in recent months. Indeed, house prices increased by an average of 1.6% a month over the April to June period - more than six times the average monthly gain recorded in the five years before the pandemic.The tapering of stamp duty relief in England is also likely to have taken some of the heat out of the market. The nil rate band threshold decreased from £500,000 to £250,000 at the end of June. This provided a strong incentive to complete house purchases before the end of June, especially for higher priced properties. For those purchasing a property above £250,000, the maximum stamp duty saving reduced from £15,000 to £2,500 after the end of June.
