PHOTO: People view displays in an estate agent’s window in Guildford, U.K., on June 12. Photographer: Luke MacGregor/Bloomberg
The U.K. housing market gained momentum in July after Chancellor of the Exchequer Rishi Sunak announced a stamp duty holiday, but the improvement is expected to be short-lived and some real estate agents are warning of a possible slump as government support for the economy is withdrawn.
New buyers flooded the market and house prices rose in every region bar London, with a key index of values turning positive for the first time since March, the Royal Institution of Chartered Surveyors said Thursday.
The boost reflects a rush to snap up homes since Sunak temporarily raised the threshold for paying stamp duty, a home-buying tax, to 500,000 pounds ($653,000) as part of a package of measures to support jobs and the economy. The tax cut, which runs until March 31, saves someone purchasing a property up to 15,000 pounds.
But RICS warned the outlook beyond the next three months is less bright, with the economy in recession and the government gradually withdrawing support programs that have kept businesses afloat and millions of people in employment.
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