Britain’s fragile property boom

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Britain’s fragile property boom
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Britain’s government is keen for the mini housing boom to continue—reflected in its decision to announce a stamp duty holiday

since the 18th century to slow the British housing market—or at least that is what the latest data from online estate agents suggest. According to Rightmove, the average asking price is now 2.4% above where it was when the lockdown began and buyer inquiries are up by 75% year on year.

The government is keen for the mini-boom to continue. In his summer statement on July 8th Rishi Sunak, the chancellor, raised the threshold for paying stamp duty, a tax on property transactions, from £125,000 to £500,000 until March 2021. The stamp-duty holiday introduced in 2008 saw a small bounce in sales immediately followed by a second peak just before it expired.

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