(Alliance News) - UK house prices took a step back in July, after hitting a record high a month earlier, numbers from the Office for National Statistics showed on Wednesday.
The average UK house price increased by 8.0% in July from a year before, slowing from June's 13% annual surge.
On a monthly basis, prices fell by 3.7% to GBP255,535 from the GBP265,000 record set in June.
This moderation in price pressure was in line with the tapering of the UK government's stamp duty incentive. In March, Chancellor of the Exchequer Rishi Sunak extended the stamp duty holiday from the end of that month until the end of June at GBP500,000, and now a new GBP250,000 threshold applies until the end of September.
From October, the stamp duty threshold will return to July 2020's levels, the ONS noted.
"As the tax breaks were originally due to conclude at the end of March 2021, it is likely that March's average house prices were slightly inflated as buyers rushed to ensure their house purchases were scheduled to complete ahead of this deadline. This effect was then further exaggerated in June 2021, in line with the extension to the holiday on taxes paid on property purchases in England, Wales and Northern Ireland," the ONS added.
By Eric Cunha; firstname.lastname@example.org
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