# UK home asking prices rise, tax cuts to spur demand: Rightmove
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: House prices in UK rise with stamp duty cut, says Rightmove
Meta Description: Rightmove reports a surge in British home prices following the tax cut announcement, leading to potential unseasonal price rises in the housing market.
URL: https://financedigest.com/uk-home-asking-prices-rise-tax-cuts-to-spur-demand-rightmovehtml

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LONDON (Reuters) – Asking prices for British homes advertised rose solidly this month and last week’s cut to property purchase tax announced by finance minister Kwasi Kwarteng could fuel demand further, property website Rightmove said on Monday.

Prices rose by 8.7% in annual terms after an 8.2% increase in August, with the average asking rising to 367,760 pounds ($399,240), Rightmove said.

Britain’s housing market had been showing signs of cooling after a more than 20% surge in prices since the start of the pandemic, as the cost of living rises and the Bank of England steadily raises interest rates.

But last week Kwarteng announced an immediate cut to the “stamp duty” tax on home-buyers, part of a wider [plan to boost economic](https://www.financedigest.com/uae-plans-long-term-economic-ties-with-israel-despite-political-strains.html "UAE plans long-term economic ties with Israel despite political strains") growth that was received poorly by financial markets.

Friday’s announcement is likely to stimulate some more demand (in the [housing market),” Rightmove director of property](https://www.financedigest.com/fractional-property-isnt-quite-as-safe-as-houses.html "Fractional property isn’t quite as safe as houses!") science Tim Bannister said.

If it does lead to a big [jump in prospective buyers competing for the constrained number of properties for sale](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales"), then it could lead to some unseasonal price rises over the next few months.

Rightmove’s index of asking prices, which is not seasonally adjusted, typically [falls in November](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year") and December.

Kwarteng’s move to raise the transaction threshold at which stamp duty kicks in, to 250,000 pounds from 125,000 pounds, means a [third of all homes](https://www.financedigest.com/still-living-at-home-a-third-of-the-nation-cant-afford-to-rent.html "Still living at home? A third of the nation can’t afford to rent") currently for sale are now completely exempt in England, Rightmove said.

($1 = 0.9211 pounds)

(Reporting by David Milliken, editing by Andy Bruce and Angus MacSwan)


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