The latest data from Rightmove has been released and the month saw the largest June increase since 2015. The record level increases of asking house prices in the housing market have occurred in every region of Great Britain, but there is an expectation that a cooling off of property purchases will be seen in the months ahead. Experts believe that higher asking prices are shutting many out of the market and that the end of the full stamp duty holiday at the end of June will calm motivation to buy.

The average asking price rose by 0.8% month on month in June for a third consecutive record breaking high to £336,073.

Another factor in the expected slowdown in the housing market is the lack of new listings coming to the housing market. Supply is considerably low and it is thought to be discouraging many hopeful home buyers. If so, a lack of interest in the market will begin to show first by property agent inquiries and online home searches such as those done on Rightmove.

The tax duty holiday deadline is days away. At the end of June, the tax duty holiday will reduce and it will end completely at the end of September. The ability to save money with the tax break has been seen as a motivator to buy. Without the discount, it will tighten the buying budget and could close out some hopeful home buyers.

There is still a major motivator to keep home buyers interested. Interest rates will continue to be low and very attractive. The savings that could be realized in securing a fixed rate deal to offer a safety net against rising rates could be enough to keep buyers shopping around. 

While experts are indeed projecting a slowdown, they have been off the mark many times as to how the opportunity to climb onto the property ladder is a motivator unto itself to keep home buyers active in the housing market. Over and over throughout the pandemic home buyers surprised the experts by showing up to get their pandemic lifestyle dream home.

Tim Bannister, Rightmove’s director of property data, remarked, “Record low interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era,” Bannister said. “Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand.”