Borough house prices up by 20%
AVERAGE PRICE OF A HOME IN EAST STAFFS NOW £223,961
HOUSE prices in Staffordshire are going up at their fastest rate in nearly two decades, with East Staffordshire seeing a 20 per cent increase in the past year alone.
Across the UK, house prices have soared, partly due to the stamp duty cut and also because people have sought more space after being cooped up during the pandemic.
In June, the average Staffordhire home cost £223,961, 13.9 per cent higher than the average cost of £196,633 in June last year, figures from the Office for National Statistics (ONS) show.
That is the biggest annual jump Staffordshire has seen in prices since the year to April 2005.
In the past year, homes in the area have had an extra £27,328 added to the price.
East Staffordshire saw the biggest increase – the average home cost £221,649 in June, up more than 20 per cent from £183,578 last year.
The smallest increase was in Newcastle-under-lyme, up 8.4 per cent from £156,843 to £170,021.
Nationally, average house prices increased by 13.2 per cent over the year to June 2021.
This is the highest annual growth rate the UK has seen since November
2004. That meant UK average house prices reached a record high of £266,000, up by £31,000 compared to this time last year.
Average house prices increased over the year in England to £284,000 (13.3 per cent), in Wales to £195,000 (16.7 per cent), in Scotland to £174,000 (12.0 per cent) and in Northern Ireland to £153,000 (9.0 per cent).
House price growth was strongest in the North West where prices increased by 18.6 per cent in the year to June. The lowest annual growth was in London, where prices increased by 6.3 per cent.
The most recent year covers the full extent of stamp duty cuts put in place across Britain following the first lockdown.
The ONS suggests the change in tax may have allowed sellers to request higher prices as the buyers’ overall costs are reduced.
On July 8, 2020, the Chancellor announced a suspension of the tax paid on property purchases with immediate effect in England and Northern Ireland.
Similar suspensions came into effect slightly later, on July 15 in Scotland and July 27 in Wales.
In England and Northern Ireland, properties up to the value of £500,000 would incur no tax, while the threshold for Scotland and Wales was £250,000.
The tax holiday for Scotland ended on March 31, and ended on June 30 in Wales. In England and Northern Ireland, the threshold was reduced from £500,000 to £250,000 on June 30, with the tax holiday ending on September 30.
Bank of England analysis reported ongoing strong demand for housing across most of the UK in the quarter to June and a shortage of properties for sale, which pushed up prices.