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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 16 February 2016

UK house prices surge pre-deadline

Deadline rush

Britain is undergoing its own attempts to cool investor activity in the housing market through making tax deductions less attractive going forward.

It is still early days, since the new tax laws are to be phased in over time, but to date all that has been achieved is an enormous surge in buy-to-let mortgages in order to beat the deadline.

Rightmove's latest asking prices index notched up a substantial +2.9 per cent or £8,324 jump to an all-time high for UK asking prices (+7.5 per cent over the year to £299,287).

Meanwhile London asking prices (+10.5 per cent to £643,843) leapt to an astonishing new high.

Many of London's best performing boroughs have been the cheaper or outer locations, reflecting changes to stamp duty levies and associated thresholds.


The supply of property coming to market has abjectly failed to keep pace with demand, as measured by indicative visits to Rightmove's website which increased by +20 per cent over the year.

The strongest growth has unsurprisingly followed demographic and employment trends, being recorded in London and its surrounding regions, the South East and East of England. 

Elsewhere, price growth since 2007 has been far more subdued. 


Hearteningly Government incentives have seen a solid increase in the number of first time buyers properties and activity.

The January jump in prices has "undoubtedly been caused by panic buying" by investors ahead of the April deadline (the UK tax year runs to April 5), which was predictable enough. 

Rightmove's full report can be found here