The average house price in 236 UK postcode districts is above the inheritance tax threshold, according to research from Halifax.
The number of postcode districts where the average house price is above the IHT threshold has more than doubled in the past five years from 117 (6%) in 2001 to 236 (11%) today.
Sales above the IHT threshold accounted for at least 25% of property sales in 423 (20%) postcode districts across England and Wales in 2006, compared with 230 (11%) in 2001.
This includes 54% of London postcode districts and 40% of postcode districts in the South East.
The research also reveals there are 22 postcode districts which have seen at least a 25 percentage point increase in the proportion of home sales above the IHT thresholds, with 16 of these outside London and the South East.
The largest increase in the proportion of housing sales above the IHT threshold over the past five years has been in NE20 in Newcastle, up from 22% to 61%.
The postcode districts with the highest average house prices above the IHT threshold are SW1X in Knightsbridge and SW7 in Kensington.
Tim Crawford, group economist at Halifax, says: “We call on the government to raise the inheritance tax threshold to £460,000. That would account for the significant rise in house prices over the past 11 years. We also call on the government to commit to increase the inheritance tax threshold in line with house price inflation in the future.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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