Homeowners are facing a double hit of falling house prices and rising council tax bills as the long-term effect of the pandemic hits family finances.
The Office for Budget Responsibility (OBR) warned that the temporary boost from Rishi Sunak’s stamp duty holiday would be reversed next year with house prices dropping by more than 8 per cent and not recovering until 2022.
As a result, by 2025 the cost of an average home will be 17 per cent lower than they predicted at the time of the budget in March and before the impact of Covid-19 was known.
In July, the chancellor raised the threshold for paying stamp duty from £125,000 to £500,000 until March 31 next year. Buyers pay no tax on purchases below
