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House Prices: UK property market’s never ending boom

PHOTO: The market saw a 7.1% annual rise this year, according to the latest data from Zoopla, with prices rising by an average of £16,000. FILE

UK property owners have benefited from a sharp rise in house prices during 2021.

The market saw a 7.1% annual rise this year, according to the latest data from Zoopla, with prices rising by an average of £16,000.

The total value of the UK housing market was up £670bn in 2021 alone, taking it to a total of £9.5tn, while the average home now has a market value of £240,800 compared to £224,800 a year ago.

There have been 1.5 million property transactions since 1 January, resulting in the highest number of sales since before the financial crisis, data showed.

House prices in nearly every region of the UK have risen this year by more than in 2019 and 2020 combined.

Here are a few factors that have driven the housing boom over the last 12 months:

Stamp duty holiday

The government’s stamp duty holiday was a tax break designed to prop up the housing market, and help consumers as the economy contracted during the COVID-19 lockdowns.

It was extended from 31 March 2021 to the end of June and once more, tapering from June to the end of September, as people rushed to market.

Housebuyers could have cashed in on savings of up to £15,000 if they bought at the right time this year.

The break caused a frenzy in the market, with many using it as an excuse to make long-awaited moves or buy for the first time. However, some said that with climbing house prices over the past year the discount was quickly priced in and that it “distorted” the market.

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