UK house prices rise further since 2004 as tax exemption widens By Reuters

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© Reuters. FILE PHOTO: Construction workers build a new home in Aylesbury

By David Milliken LONDON (Reuters) – Britain’s house prices rose 2.1% in April, their biggest monthly rise in more than 17 years, after Finance Minister Rishi Sunak unexpectedly extended a waiver Tax on property sales, figures from mortgage lender Nationwide showed on Friday. . House prices are 7.1% above their prior-year level and close to December’s growth rate of 7.3%, which was the highest in nearly six years after COVID closures boosted demand for homes. more spacious. “Just as expectations of the end of the stamp holiday led to a slowdown in house price growth in March, the extension of the stamp holiday in the budget triggered a further acceleration in April,” said Nationwide’s chief economist. , Robert Gardner. Stamp duty, the main property purchase tax, will not be paid on home purchases of up to 500,000 pounds ($ 696,650) made before the end of June, and the first 250,000 pounds of property purchases will be tax-free. until the end of September. The tax exemption was due to expire at the end of March. In addition to an increase in property prices, the tax exemption contributed to a sharp increase in the number of property sales last year. Nationwide said there was scope for home prices to rise further in the coming months due to a fairly fixed supply of homes and an ongoing desire to move as a result of the COVID pandemic, which reduced demand for small homes downtown. from the city. But Gardner said activity could slow later this year, perhaps dramatically, if unemployment rises, as most economists predict. ($ 1 = 0.7177 pounds)

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