Leading estate agent believes house prices in Exeter could continue to soar until the end of the year at least – despite falling prices across the country as the stamp duty holiday ends .
According to Halifax, nationwide home prices have fallen 60 percent on the five-year average during the first week of July, when the stamp duty holiday is gradually ending.
Introduced by the government to stimulate the housing market during the coronavirus pandemic, buyers have not had to pay any stamp duty on the first £ 500,000 of their purchase price since June 2020.
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However, that ended on June 30, meaning a five percent tax rises to £ 250,000 for properties up to £ 925,000. The rates on the above properties are even higher.
It has seen house prices drop across the country – but not in Exeter and some other Devon hot spots, which have seen prices skyrocket since the start of the Covid-19 crisis.
Roger Wilkinson, owner of Wilkinson Grant & Co, said he saw no reason why the Southwest’s real estate boom would end anytime soon.
“The end of the stamp duty holiday has had no impact on demand, which continues to exceed supply.
“The effect of this is that the supply / demand ratio continues to push prices up.
“It is difficult to predict how long this will increase, but certainly until the next quarter and even until the end of the year, it would be reasonable to expect housing prices to rise.
“In hot spots especially, where demand really exceeds supply, prices could continue to rise by up to 25%, whether it’s Salcombe, Shaldon or Topsham.
“They have overtaken other addresses to other places in the UK. Places like Bath, Bristol and Gloucester are already up there, but there is no reason to think Exeter will not match these. price at any given time.
“People come to the Southwest if they can, so it wouldn’t be a surprise to see house prices go up even if prices go down a bit across the country.”
According to Rightmove, the The average house price in Devon is currently £ 305,185 – slightly below the Cornwall average of £ 317,622.
This puts the two well above the national average of £ 260,358, according to Halifax.
A huge increase in demand from people living in big cities like London, along with steady local demand, has resulted in bidding wars and soaring property prices in Exeter.
From October, stamp duty rates are expected to return to normal, meaning homebuyers’ starting point will drop to £ 125,001.
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“Even six to eight weeks before the end of the stamp duty holiday, there was no slowdown in registrations, although people knew full well that they would not benefit from the holiday,” Wilkinson continued.
“Plus, any savings – or perceived savings – from the holidays have been offset by rising house prices.
“The end of the holidays may well have a big impact on prices across the country, but not really in Exeter or Devon.”
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