The average house price has risen by more than £15,000 since June, according to the latest figures from Halifax, Britain's biggest mortgage lender. However, David Hannah, principal consultant at Cornerstone Tax, says that this simply highlights the fact that the stamp duty holiday is now costing buyers more than they are saving.
Hannah said: “Halifax indicated that the average UK house price increased from £241,604 in July - when the stamp duty holiday was introduced - to £253,243 in November. On most properties, this huge £15,000 increase far outweighs the amount buyers could save from taking advantage of the stamp duty holiday. The potential stamp duty holiday saving on the average home is £2,650, while the maximum saving on a property valued at £500,000 or more is £15,000.
“In comparison to last November, prices have risen 7.6% annually, which is the fastest rate of property inflation since June 2016. The data from Halifax suggests that valuations have soared by a hefty 6.5% since June.
“The government needs to do more to help get people get on the property ladder; government-backed purchase mortgage guarantees for borrowers would be a great way to reinstall confidence in the lending market.”