The UK average house price fell by £ 10,000 in July from the previous month, official figures show as the housing market appeared to cool after the phasing out of the duty stamp holidays.
The average UK house price was £ 256,000 in July, up £ 19,000 from a year earlier, according to data from Office for Statistinational ques (ONS) .
Average house prices in the 'year to July increased by 8%. However, the increase was down from 13% recorded in the 12-month period ending in June. The housing market dipped slightly in July as many homebuyers rushed to finalize their purchases by deadline for the stamp duty holiday of June 30.
From July 1, 2020 to June 2021, buyers did not have to pay stamp duty on the first £ 500,000 of the purchase price of a property in England and Northern Ireland, provided the purchase is completed on time. The threshold at which stamp duty begins in both countries fell to £ 250,000 on July 1 of this year and will revert tou pre-pandemic level of £ 125,000 on October 1.
According to ONS data, average house prices have risen to different paces in the UK's four countries over the year, with the largest increase, just under 15%, in Scotland, where the average reached £ 177,000.
In Wales the increase was almost 12%, bringing the average price of a Welsh home to 18 £ 8,000, while 9% was recorded in Northern Ireland, bringing the average house price to £ 153,000.
House prices have risen at the slowest pace in England, by 7%, although that the country has the highest UK average at £ 271,000.
London remained the region with the lowest annual growth (2.2 %) for the eighth consecutive month.
The soaring house prices over the lasthe year has made homeownership even more inaccessible for many people, said Nitesh Patel, strategic economist at Yorkshire Building Society.
"With a Low housing supply versus high demand, we can expect housing prices to remain out of reach for many first-time buyers. And if rents also continue to rise, their ability to save for a deposit will continue to decline, ”Patel said.
Despite the July slowdown, Prices aren't expected to fall anytime soon, according to Sarah Coles, personal finance analyst at brokerage firm Hargreaves Lansdown.
"There is no sign of deflation imminent, as the race for space, lowest mortgage rates and the welcome return of first-time buyers continue to bring the market to life, ”she said.
" NewWe still haven't finished the process of reassessing how and where we want to live in a post-pandemic world. Many of those who wanted to move held back because they couldn't find anything on the market, and they didn't want to get caught up in a bidding war. "
The ONS said its July house price figures may be revised in the future, as there was less transaction data available than expected during the pandemic.