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Halifax UK house price index June 2021

ended 06. July 2021

On Wednesday morning (7 July) at 07:00, the Halifax published its June house price index.

Russell Galley, Managing Director, Halifax, said:

The average UK house price slipped by -0.5% in June, the first monthly fall since January. As a result annual house price inflation also eased back slightly from May’s 14-year high of +9.6% to stand at +8.8% in June.

Below are a selection of views from property experts around the UK.

10 responses from the Newspage community

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Imran Hussain
Director at Harmony Financial Services
"In June, you had people metaphorically punching, kicking and screaming to complete, with many now left disappointed due to factors beyond their control. "When the right property came onto the market last month, competition for it was still off the scale, despite the full Stamp Duty savings being firmly off the table. "There may be a slowdown in transactions now that the first phase of the Stamp Duty holiday is over, but the demand for property is still there. If any correction is to happen, it will likely affect properties above £1 million. "The availability of mortgage products now is much more comprehensive than it was at the start of the year and lender confidence is in full swing. With 5% deposit mortgages now back, as long borrowers' circumstances are simple and not super complex, lenders are relatively happy to lend. "Demand for properties is still strong, especially among first-time buyers and second steppers who are still focused on the remaining Stamp Duty savings."
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Scott Taylor-Barr
Financial Adviser at Barnsdale Financial Management
"In June, the entire property market could be summed up in two words: Stamp Duty, or rather the lack of it. Everyone was pushing hard to beat the end of the first phase of the SDLT holiday, at £500,000. "Properties are flying off the shelves faster than agents can get them on. The extreme imbalance in supply and demand has resulted in some exceptionally sharp price rises, in some areas more so than others. "Even if the market is in a bubble, it's unlikely to go pop. Demand for property has always been high in the UK, even before the Stamp Duty holiday. So when demand does drop off, which is inevitable given the frantic activity of the past six months, this is more likely to result in low or zero house price growth for a period, rather than a drop. "The availability of mortgages is far better than at the beginning of the year, with lenders more comfortable with the treatment of furlough and other coronavirus support. However, due to the sheer volume of business in the system, it's taking much longer for all parts of the transaction than we have ever seen before, so patience is key. "Demand and therefore price growth are likely to remain strong in the sub-£250,000 market, as people continue to try and chase the Stamp Duty saving. Higher priced properties are perhaps going to plateau now that the Stamp Duty is payable again. Beyond October, that plateau will likely going to extend to all property, but it will still be an active and buoyant market, just one without the sharp house price growth we have seen over the past year."
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Lewis Shaw
Owner and Mortgage Expert at Shaw Financial Services
"June was overshadowed by endless fuss about the first phase of the Stamp Duty Holiday coming to an end. I for one am glad it's over. Now that we have the second level of the Stamp Duty holiday with the nil rate band up to £250,000 until 30th September, I'm expecting things to get a bit more back to normal. "The market is experiencing an acute housing stock drought and with thousands of first-time buyers feeling incredibly thirsty, there's simply too much demand and not enough supply for the market to pop. "For those fortunate enough to win the latest bidding war for a property, it's now much easier than it was 12 months ago to get a mortgage agreed."
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
"The stampede to buy property in June continued, despite the fact the Stamp Duty deadline was unachievable for most. Supply is still the market's nemesis, with multiple potential buyers lurking in the wings for every new property hitting the portals, which keeps driving prices upward. Until the supply issue is solved, it's hard to see the market stop its current run."
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Rob Gill
Managing Director at Altura Mortgage Finance
"The momentum generated by the Stamp Duty holiday shows little signs of abating. Having boosted property prices and activity by such extraordinary amounts since its introduction last July, and with a further three months to run at a reduced level, it doesn't seem like much is going to slow down this runaway train of a property market just yet."
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Iain Swatton
Head of Intermediaries at Dashly.com
"Unexpectedly, June was extremely busy with a lot of activity focused on beating the stamp duty deadline. "But even without Government-backed schemes, the market is still hot, particularly with low interest rates offered from a number of lenders. "There's never been a better time to borrow, and it's very likely that even with the absence of the stamp duty holiday, the property market will remain buoyant for the rest of the year."
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Duncan Kreeger
CEO and Founder at TAB
"The rate of price growth will almost certainly slow in the months ahead, now that the first phase of the Stamp Duty holiday is behind us, but it's unlikely to go into reverse. "Interest rates are at an all-time low and I suspect people will continue borrowing until they start to edge upwards, which will understandably affect sentiment. "In terms of future price growth, we need to be looking more granular into which types of property might be impacted. For instance, blocks of flats, with no outside space, or smaller properties closer to the city centre, might fall due to the change of preferences people have when purchasing a property. "Areas outside of cities, with access to gardens, open spaces and closer to the countryside, are likely to be affected positively."2
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services
"We've seen a rush of buyers trying to get in before the end of the Stamp Duty holiday, with many now disappointed to have missed the full savings. Equally, there's a lack of knowledge among buyers that there are still Stamp Duty savings to be had until the end of September, albeit at a lower level. "Properties are as scarce as a table on a Friday night in a popular pub, with many being sold within days of coming onto the market. "We are still incredibly busy, and the reopening of pubs, bars and other entertainment venues hasn't seemed to slow down those wanting to buy their own homes, and especially those buying their first. "On the mortgage front, the self-employed have definitely been hit hardest when it comes to getting a mortgage, but hopefully this will change as restrictions are lifted."
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Graham Taylor
Managing Director at Hudson Rose
"June was a mad dash to get deals over the line rather than a heavy influx of new applicants. While buoyant, it was by no means April or May. "We are halfway to the finish line in the Stamp Duty race, with the £500,000 nil band rate being halved to just £250,000 until the end of September. "In many areas of the country, people who are looking to move up the ladder from starter homes can still benefit from the prevailing Stamp Duty rates, and this should hopefully bring more lower value properties onto the market. "Mortgage rates remain ridiculously low and we have also seen the lender criteria relax in some areas, which has made it easier for some borrowers to access funds. Self-employment remains one of the key sticking points, as does higher loan-to-value lending. "As for the rest of the year, it all depends on whether you are a glass half full or half empty individual. The end of furlough and the Stamp Duty holiday drawing to a close are a cause for concern for some, but the past 12 months have shown that things don’t always pan out as you might expect. Personally, we would expect activity levels to be something a little closer to ‘normal’, whatever that is."
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Robert Payne
Director at Langley House Mortgages
"It would be naive to assume that the Stamp Duty relief is the only factor driving the property market, especially when you look at the volumes of business being submitted in June by applicants who have no hope of meeting the deadline. "Lenders have relaxed their criteria a lot since the initial Covid restrictions so it's far easier to obtain a mortgage than it was, particularly at higher loan-to-values. The problem is the acute shortage of property on the market and the intense competition for anything that is."