UK house prices dipped by 0.5% in June, according to Halifax. A looming stamp-duty cliff-edge at the end of the month has cooled demand. Stamp-duty relief is now being tapered until it ends on 30 September. Still, Halifax says prices are up by 8.8% on the year. Nationwide reported last month that its house-price index has surged by 13.4% in a year, the biggest annual leap since November 2004.
The housing market has soared on a cocktail of low interest rates, government furlough help and the stamp-duty holiday. Yet property is now heading into uncertain territory, says Geoff Meen for theconversation.com.
The end of the stamp-duty holiday comes as the furlough scheme is also winding down, which could have an effect on incomes: “as an approximation, a 1% reduction in real income has historically led to about a 2% reduction in house prices”. Prices, stretched by a mammoth rally, are also more vulnerable to economic shocks.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The market will shrug off the end of state support, says Isabelle Fraser in The Daily Telegraph. Demand might fall back, but supply is even tighter. “The ratio of sold to available properties is at its lowest level since July 2002.”
After the buying frenzy of the past year, property “resembles a supermarket in the early days of lockdown: the shelves are bare and only the dregs remain”. Expect prices to remain “buoyant”.
-
Is now a good time to invest in Barclays?Barclays' profit growth is healthy, and the stock is cheap compared with its rivals
-
Profit from other investors’ trades with CME GroupCME Group is one of the world’s largest exchanges, which gives it a significant competitive advantage
-
Key lessons from the MoneyWeek Wealth Summit 2025: focus on safety, value and growthOur annual MoneyWeek Wealth Summit featured a wide array of experts and ideas, and celebrated 25 years of MoneyWeek
-
Defeat into victory: the key to Next CEO Simon Wolfson's successOpinion Next CEO Simon Wolfson claims he owes his success to a book on military strategy in World War II. What lessons does it hold, and how did he apply them to Next?
-
Aircraft leasing companies can lift investors' portfoliosThe aircraft leasing business is a safer way to cash in on air travel and its booming demand. David Prosser explains how it works and how to access it
-
8 of the best houses for sale with fishing rightsThe best houses for sale with fishing rights – from a Georgian property on the banks of the River Derwent, County Durham, to a restored mill house in Marlborough with fishing rights on the River Kennet
-
How to find value in Asian small cap stocksThree competing Asian investment trusts all have good records, but this one is the obvious choice at present, says Max King
-
How dinosaur fossils became collectables for the mega-richDinosaur fossils are prized like blue-chip artworks and are even accelerating past the prices of many Old Masters paintings, says Chris Carter
