House prices in the UK have risenby 10.8 per cent over the last year, due to a lack of supply of bigger properties on the market.
Consequently, the average priceof a house in the UK has hit a record high of £278,123 – almost £28,000 more than it was in February 2021.
Russell Galley, managing director of Halifax, noted this is the biggest cash increase in the index’s 39-year history, saying: “Lack of supply continues to underpin rising house prices, with recent industry surveys showing a dearth of new properties being listed, now along-term trend.”
He confirmed this is especially a problem with bigger family homes, with the price of detached properties having increased by £43,251 or 11 per cent in the last year. In comparison, flats have risen in price by just seven per cent, or £10,462 over the same period.
Since the pandemic began and people have had to spend more time working from home, and enjoy it. There has been a rise in demand for properties with offices, outdoor space and home gyms. However, if buyers are not able to find a larger house for sale in their desired area, they are likely to be tempted to create this for themselves by spending that money on the existing home.
Not only would this save considerable money in buying the next sized property, but it would save thousands of pounds on stamp duty land tax(SDLT) and solicitor’s fees. For instance, a house worth £600,000 would requirebuyers paying £20,000 in SDLT costs alone.