UK House Price Growth Hits 17-Year High... Acquisition Tax Benefit Reduction Expected to Ease in Second Half

[Image source= Bloomberg]

[Asia Economy Reporter Park Byung-hee] According to Bloomberg News on the 29th (local time), UK house prices in June rose at the fastest pace in 17 years. However, the upward trend is expected to ease somewhat in the second half of the year, as the stamp duty relief benefits will be reduced starting from the 30th.

According to Nationwide, the UK building society, house prices in June increased by 13.4% compared to the same month last year. Nationwide explained that the rate of house price increase was the highest since November 2004. Compared to the previous month, prices rose by 0.7%, marking the third consecutive month of increase.

For the entire second quarter, house prices rose by 10.3% compared to the same period last year. June house prices were reported to have maintained an all-time high of ?254,432.

The UK government will begin reducing the stamp duty exemption benefits starting from the 30th. The exemption benefits are scheduled to end completely on September 30.

It is analyzed that the demand to purchase homes before the reduction of stamp duty exemption benefits was a factor in the rise of house prices in June. Since many people bought homes in advance before the benefits were reduced, it is expected that the upward trend in house prices will somewhat calm down in the second half of the year.

Bloomberg Economics economist Niraj Shah stated, "The June house price increase rate will be the peak," adding, "Many people rushed to buy homes, and in the second half of this year, we will not see such a rapid increase in house prices as now."

This content was produced with the assistance of AI translation services.