UK Personal Finance

A recent survey completed by Halifax has shown that in the last three months up to June, house prices in London have risen by 4.9%, taking the average house price up to £3000, 000 in London.

The survey shows that this means that the capitals average house price is above the threshold for inheritance tax, currently at £3000, 000.

According to the survey house prices are rising fastest in Northern Island. There has been a rise of 8.5% in the same three months and an increase of 47% in the past year.

As well as the rise in house prices reaching the inheritance tax threshold, the recent rises has pushed the average prices above £250, 000 watermark for 3% stamp duty, for the South East.

Due to the governments continuing failure to increase the inheritance tax and stamp duty thresholds, the typical homebuyer in London and the South East will be forced to face the oncoming tax burden, caused by the current house inflation.

With house prices accumulating in Northern Island, it has been a sudden change in the last two years. With the average house costing in region of £229, 000 it is the most expensive area in the UK outside of London and the South East. Two years ago Northern Island was the second cheapest region in the UK.

At present there are eight towns listed at the top of the list where house prices have risen, in Northern Island. The cost of a house or flat in Newtonards has ascended by 64% in the past year- to £228, 000. This has been followed by various house increases in Craigavon, Newtonabbey, Downpatrick, Carrickfergus, Belfast, Lisburn and Newry.

The survey has shown that this regional expansion was due to a strong economy, immigration and constant pursuit from second time homeowners.