British house prices increase at fastest rate in five years

Property market booms as stamp duty holiday deadline looms

The story angle focuses on people who are rushing to sell or buy house due to extension of stamp duty holiday deadline. The stamp duty holiday means that buyers will not have to pay tax on the first £500,000 purchase and they will be able to save up to £15,000 if they move before the deadline finishes. In my article I used three interviewees. One was conducted in person, whereas the other ones through the phone. All participants had been informed about the purpose of this article. Moreover, I explained them all important terms and condition which they agreed. Finally, I received an official permission to use them in my journalistic piece. In addition to that I have successfully passed the risk assessment form. Other elements that you can see in this article such as the video and image had been produced by myself.

The UK’s property market has been experiencing high volumes of customers in recent weeks.

The spike was caused by people who have been rushing to complete deals before the end of the stamp duty holiday.

Adam Pilanc, who is a financial advisor and director of the mortgage broker, Step by Step Financial Solutions, said that he did not expect so many people would want to buy or sell their house.

He said: “I thought that the world pandemic would have an impact on the property market and scare people from buying or selling houses.”

Then he added: “Within the last five days we served about thirty clients, which I think is very impressive.”

From the beginning of April, property prices have soared at their fastest pace in five years.

It comes after the Treasury extended the housing tax cut from the 31st of March until the end of June.

Within a one-month period, purchasers scrambled to complete deals and today’s figures reflect those sales.

According to, HMRC’s statistics:

“Over the last month all transactions leapt by 49.6% and there were  399,060 sales in the first quarter of the year, which made it the busiest quarter since the spring of 2006.”

But what is the secret of the stamp duty holiday?

The stamp duty holiday means that buyers will not have to pay tax on the first £500,000 of their house purchase.

Moreover, they will be able to save up to £15,000 if they move before the deadline finishes.

Joanna Wieczorek is one of the customers who decided to sell her house during the world pandemic.

She said: “I was planning to sell my house before the Covid-19 outbreak and thankfully I did not do that because now I can get a better price”.

She then added: “I feel like selling a house during a pandemic is like gambling on the stock market.”

Buyers not in a good position

Ms Wieczorek’s has sold her property, but what about those who want to purchase one?

Cedric Botezatu is one of the buyers who found the current situation problematic.

He said: “I was aware that the recent extension of the stamp duty holiday would reflect on house prices, but I thought that with my savings and bank mortgage I can afford it.”

Then he added: “I feel hopeless because I applied for a mortgage, but my bank did not approve it.”

Mr Pilanc explained why Mr Botezatu’s mortgage may have been declined.

He said: “We need to remember that the pandemic hasn’t finished yet and the economic situation is still unstable.”

Then he added: “Before a bank will approve your mortgage, they have to do some checks into your credit history, which would then confirm whether you will manage your finances well or not.”

 

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