Stamp duty holiday pushes first time buyer homes up by 11.7%

The stamp duty holiday has increased the price of a first-time buyer home by an average 11.7% in England, according to new research published by GetAgent.

The estate agent comparison site revealed that prices have climbed by as much as 31.5% in some parts of the country.

July last year saw the stamp duty holiday introduction by the government as a financial incentive to keep the housing market afloat during the pandemic, in a bid to prop up the UK economy.

However, the heightened demand to arise from the tax break has pushed house prices to an all-time high, and the research by GetAgent has revealed that first-time buyers are now facing an even larger obstacle when it comes to securing homeownership.

The findings suggested that the average price of a first-time buyer home in July 2020, just before the holiday was introduced, was £212,166. The latest figures now show the average first-time buyer home costs £236,982, a £24,816 increase equivalent to 11.7%.

On a regional level, the North West has seen the largest increase, with the average first-time buyer now paying £168,820 – a jump of 16.9% since July last year. Yorkshire and Humber (14.8%), the North East (13.4%), West Midlands (13%), and East Midlands (12.9%) have also seen first-time buyer price increase at a greater rate than the national average. 

GetAgent founder and CEO, Colby Short, commented:“There’s no denying that the stamp duty holiday has been a roaring success in terms of fuelling property market demand and keeping the market moving in an otherwise uncertain time.

“However, while many existing homeowners will have benefited from a boost in the value of their home, the reality is that the nation’s first-time buyers are worse off when it comes to taking that first step onto the property ladder.

“Although mortgage costs remain very favourable at present, the sheer increase in property values and the deposit required will see many either forced to save for longer, or priced out of the market completely.”

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