According to the ONS, UK average house prices soared by 15.5% from July 2021 to 2022.
Experts have revealed their predictions for the housing market for the rest of the year[/caption]
For first-time buyers the threshold is now £425,000, up from £300,000.
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The maximum value of a property on which first-time buyers’ relief can be claimed will also rise from £500,000 to £625,000.
But what does it mean for house prices for the rest of the year?
We spoke to experts who gave us their predictions.
Are house prices likely to go down in 2022?
House prices went up, not down, following the last stamp duty holiday, in July 2020.
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Then Chancellor Rishi Sunak announced the freeze in a bid to stimulate the housing market.
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, said following the announcement on September 23, she expected a similar outcome.
“The tax cut is stimulating demand, and with supply at an almost record low it means more people chasing too few properties, which is likely to mean more price rises.
“Further ahead, we will reach a point when these higher prices plus higher interest rates push property out of reach of too many buyers, so demand dips again, but at least for now we can expect it to fuel more price rises.”
Meanwhile, Edgar Rayo, chief economist at finance broker Finanze, said the stamp duty cut combined with the Bank of England’s decision to hike interest rates from 2.25% from 1.75% would raise house prices by 3 to 4% by the end of the year.
Karen Noye, mortgage expert at Quilter, stopped short of saying a stamp duty cut would stop house prices from rising, but that it would stop them from dropping from such highs as have been seen in recent months.
She said: “It may be enough to quell potentially dropping house prices with people staying put and avoiding moving costs in the face of the energy crisis, double digit inflation and soaring food costs.
“Buyers could once again be tempted to move despite the economic backdrop.”
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Inflation hit 9.9% in August, piling more pressure on households’ budgets.
The figure was a 0.2% drop from 10.1% in July, and caused by dropping fuel prices.