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UK house price growth slowed in August, figures on Wednesday showed, lapping a tough comparative last year, when there was a rush to buy ahead of a rise in stamp duty.
According to the Office for National Statistics, UK house prices rose by just under 14% year-on-year in August, slowing from a 16% rise in July.
"Despite UK house prices increasing between July and August 2022, annual growth has slowed because of the sharp rise in house prices in August 2021 following changes in the stamp duty holiday," the ONS explained.
In March 2021, Rishi Sunak, the chancellor at the time, extended the stamp duty cut granted in 2020 to the end of June 2021 at a £500,000 nil rate band, which was then tapered to a £250,000 threshold until the end of September 2021. It meant there was a rush to conclude deals before the tax holiday ended.
Rising interest rates and the end of the stamp duty cut meant there were fears for future house price growth.
However, former chancellor Kwasi Kwarteng last month said the threshold for stamp duty on home purchases will be lifted back to £250,000 from £125,000. For first-time buyers, it will be lifted to £425,000 from £300,000.
Though most measures from the mini-budget were reversed, the stamp duty proposal survived
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