Average house prices are starting to fall

The average price of UK houses has fallen by £ 10,000 in July compared to the previous month, this has been put down to the market cooling after the final part of the stamp duty is coming to an end, the average house price is still around £256k and around £18999 higher than the previous July average this data is taken from the office of national statistics.

The huger rise has been put down to the holiday that was given to house buyers the 1^st July 2020 to June 2021 up to £500,000 purchase price  and then from the 1^st of July until 30^th September 2021 it was reduced to £250,000 purchase price .  On the first of October it will fall back to £125000.

If the purchaser was purchasing as a second property they would still benefit from the holiday as the first part of the stamp duty up to £500,000 was still not payable only the 3% on the second property part of the stamp duty .

The savings on a property based on 1 property owned after completion between July 2020 and 30^th June 2021 £500,000k purchase price

Stamp duty 0

Stamp after end of Sept £10000

If it was a second property buys to let or second home after completion between July 2020 and 30^th June 2021 £150000

If it was a second property buy to let or second home after completion after end of September 2021 £30,000

As you can see the saving was a lot on 1 home or buy to let , the issue was this stimulated the market so pricing went up and in a lot of circumstances the increase in property price wiped out the saving .

According to the ONS data, average house prices rose at different rates in the four UK nations over the year, with the largest increase, just under 15%, in Scotland, where the average reached £177,000.

In Wales, the increase was almost 12%, taking the average price of a Welsh home to £188,000, while 9% was recorded in Northern Ireland, taking the average house price there to £153,000.

House prices climbed at the slowest rate in England, by 7%, although the nation records the UK’s highest average at £271,000.

London remained the region with the lowest annual growth (2.2%) for the eighth consecutive month.

Soaring house prices over the past year have pushed home ownership further out of reach for many people, said Nitesh Patel, a strategic economist at Yorkshire building society.