House prices to increase by end of the year

An estate agency has warned that house prices will increase before the end of the year.

An estate agency has warned that house prices will increase before the end of the year.

First published in News
Last updated
Borehamwood Times: Photograph of the Author by , Reporter

While more than 800 people waiting for social housing, an estate agency has warned that house prices will increase before the end of the year.

At the current rate of house price growth, the buyer of an average home in Borehamwood will be subject to a four per cent stamp duty tax rate within months.

The average house in the town currently costs £476, 793, but once prices reach £500,000 the stamp duty will increase from three per cent to four per cent - adding at least an extra £5,000 to the bill.

Haart Estate Agency warns that with a 15.89 per cent year-on-year increase in property prices, it will be a matter of months before the average price tips over into the next stamp duty bracket if current growth rates continue.

Yet while these house prices are on the up, 833 people are still waiting for accommodation on Hertsmere Borough Council's housing waiting list.

Councillor Seamus Quilty, portfolio holder for housing and economic development, said: "We are obviously concerned about any significant rise in property prices, as this impacts on local residents trying to buy their own homes and also has a knock-on effect on rental prices.

“The government’s help to buy scheme, introduced last year, has helped to make mortgages more affordable for some buyers and has led to an increase in new homes being constructed.

"This is obviously a national issue and market forces for supply and demand will affect all London and South Eastern boroughs and districts."

Stamp duty starts at one per cent on properties between £125,000 and £250,000, rising to three per cent on sales up to £500,000 and four per cent on homes up to £1 million.

Borehamwood haart Branch Manager Stefano Tolaini said: “Stamp duty bands have not moved upwards in line with house price inflation, with successive governments benefitting by billions of pounds. The Government should raise the stamp duty threshold to benefit buyers and sellers alike.”

Comments (1)

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11:09am Wed 20 Aug 14

John_W says...

Well, the estate agents aren't going to say that prices will drop, will they?
This is obviously panic on their part to counter the fact that smart buyers are staying out of the market, while major international banks are predicting a fall in prices. As soon as interest rates go up, we can expect a flood of reposesions at 75% market value, a total loss of confidence and another price crash. The only properties that will hold value are the ones in the catchment areas of certain over subscribed faith schools.
Well, the estate agents aren't going to say that prices will drop, will they? This is obviously panic on their part to counter the fact that smart buyers are staying out of the market, while major international banks are predicting a fall in prices. As soon as interest rates go up, we can expect a flood of reposesions at 75% market value, a total loss of confidence and another price crash. The only properties that will hold value are the ones in the catchment areas of certain over subscribed faith schools. John_W
  • Score: 2

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