House costs surge amid fears of capital good points tax raid – newest updates
The average UK house price has come within a whisker of a new record high as homeowners raced to sell up ahead of expected tax rises in the Budget.
Property values rose by 4.7pc in September compared to the same month last year, according to the Halifax house price index, which was the fastest pace of growth since November 2022.
It showed that prices rose by 0.3pc compared to August, leaving the average home worth £293,399, just shy of the record high of £293,507 set in June 2022.
Mortgage brokers and estate agents said the surge in prices was partly fueled by fears of tax rises in Rachel Reeves’s Budget later this month, as well as the Bank of England cutting interest rates for the first time in four years in August.
A record amount of capital gains tax (CGT) was paid last month as landlords and investors rushed to sell up ahead of the Budget.
HM Revenue & Customs (HMRC) pocketed £197m amid growing speculation that Rachel Reeves could align CGT with income tax bands next month.
Stephen Perkins, managing director at Yellow Brick Mortgages said: “Demand remained resilient in September as borrowers looked to initiate their home moves before the autumn Budget potentially takes the wind out of their sails.”
Andrew Montlake, managing director at Coreco, said: “The focus now is on the autumn Budget and the hope is that it doesn’t undo all the momentum that has grown over the summer and put us back where we started.”
Matt Thompson, head of sales at Chestertons, said: “Lower interest rates and sub-4pc mortgage products saw more house hunters start their property search in September.
“The uplift in buyer activity, and looming changes to capital gains tax in the upcoming Autumn Budget, also motivated sellers to put their property up for sale.”
Amanda Bryden, head of mortgages at Halifax, said: “Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates.
“This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40pc in the last year and now at their highest level since July 2022.”
Read the latest updates below.
