House prices have risen steeply in the UK over the past year, with the market remaining strong despite the winding down of the stamp duty holiday. This is reflected in the news that 10 London postcodes have now joined the so-called ‘£1m property postcode club’, including Hackney, the Daily Mail reports.
To be considered a member of this fast-growing club, the publication explains, at least 20 per cent of the sales in an area must have been above £1m, in at least two three-months periods since the second quarter of 2020. Other areas of London to pass this threshold recently include Hendon, Hornsey, and Vauxhall.
Several places outside of London have also made it onto the list, including North and West Oxford, Tunbridge Wells and Reading. Just edging on to the outside of the ‘club’ are sought after areas in Cornwall, the New Forest, and the Isle of Wight, as people are taking advantage of more flexible working locations, and seeking larger homes with more outside space.
However, according to The Guardian, the booming property market may not be sustained for much longer, as house sales dropped dramatically during July. According to official data by HM Revenue and Customs, the volume of transactions fell by 62%, from 213,370 exchanges in June, to 82,110 during July.
Speaking to the paper, Iain McKenzie, the chief executive of the Guild of Property Professionals, said: “We saw monumental growth in the volume of properties sold prior to July, in light of the rush to beat the deadline.” Mr McKenzie described the big fall during July as ‘always inevitable.’
The dramatic drop-off in transactions was widely predicted, as up until 30 June, the stamp duty holiday, which meant that the first £500,000 spent on a property was tax -free, was in full effect. This was scaled back to £250,000 on 1 July, and will return to pre-pandemic levels of £125,000 on 1 October.
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