LONDON: Marketing costs for homes in Britain hit a record high after finance minister Rishi Sunak stoked the market again by increasing a tax cut for home-buyers in the previous month, property website Rightmove provided on Monday.
Asking costs increase by 2.1% in the five weeks to April 10, only the second time in five years that costs have increased by more than 2% from one month to the next, Rightmove provided.
The rise took the average cost of property coming to market to an all-time of 327,797 pounds ($451,737) and homes were selling in record-fast time, it further said.
On March 3 Sunak provided that he would increase a temporary tax break for buyers and he also informed a new mortgage guarantee scheme for first-time buyers who cannot make it for the large deposits.
The tax break was rushed out in 2020 to counter the economic hit from coronavirus. It helped to fuel a mini-boom in the housing market which was previously witnessing strong demand from people seeking more space after their first lockdown.
Other measures of British house costs have also shown an increase since Sunak’s declaration.
Rightmove provided that its measure of available properties was at a record lesser.
“However some of the froth is likely to come off this spring surge later in the year as the challenging economic conditions come to the fore, some of the government support to individuals and businesses unwinds, and the stamp duty holidays finally end in England and Wales,” it said.
“Nevertheless we expect activity to remain robust for the rest of 2021.” ($1 = 0.7256 pounds)