Research by GetAgent has revealed how asking prices across many areas of the property market tumbled in the wake of the initial stamp duty holiday deadline at the end of June.
The analysis looked at the average asking price for homes listed on the market in June of this year when the stamp duty holiday was in full swing and how this compared to just one month later, once the tax-free threshold on a property purchase had been reduced to £250,000 from £500,000.
The figures show that after months on end of house price growth hitting record highs, asking prices across England saw growth of just 0.1% between June and July, with the average asking price increasing by just £277 to £336,019.
However, as many as 46% of areas saw the average asking price decline and nowhere more so than in Copeland, where it fell by 10.6% in a single month.
Gateshead also saw one of the largest declines in asking prices, down by 8.4% between June and July.
In Hyndburn asking prices dropped by 6.9% in a single month, with Colchester (5.1%) and Pendle (5%) also seeing some of the largest declines.
North Warwickshire, South Staffordshire, North West Leicestershire, Gedling and Northumberland also rank within the top 10 for the largest asking price declines following the initial extended stamp duty holiday deadline.
Colby Short, founder and chief executive officer of GetAgent, comments: “The stamp duty holiday has been fuelling an incredible rate of house price growth pretty much since its introduction and while it isn’t the primary motivation for buying a home, we’re certain to see some degree of downward correction as both extended deadlines expire.”
“In this case, the first deadline at the end of June led to an abrupt reduction in asking prices across many areas of the market, as sellers could no longer chance their arm to cash in on buoyant market activity driven by buyers with a little extra cash in their pocket during the negotiation stage.”