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In Money Matters

Tax reduction pushed house prices to new highs

2nd September 2020

Tax reduction pushed house prices to new highs Pin It

In August, UK housing prices showed the largest increase in 16 years, fuelled by increasing demand due to a tax reduction. That’s what we found on Wednesday from the mortgage provider Nationwide Building Society.

The median value compared to a month earlier by 2 per cent up to an average of 224,123 pounds. In May and June, the UK housing market was still in decline because of lockdown measures to prevent the spread of the coronavirus. The government then put in place measures to re-engage the sale, inter alia by temporarily suspending certain taxes on the sale of real estate.

However, Nationwide foresees that price growth will slow down in the coming months. In this way, government measures are ending and unemployment is also expected to rise.

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