House prices jump in August despite end of stamp duty holiday Business News

The average UK house price rose by almost £ 5,000 in August despite a stamp duty holiday starting to decline.

Nationwide saw a “surprising” 2.1% increase in selling prices, taking the average from £ 4,628 to £ 248,857. The monthly increase was the second largest in the past 15 years, surpassed only by a 2.3 percent increase in April.

Prices rose 11% during the year through August, far exceeding the cost savings buyers realized from the stamp duty changes. Real estate prices are 13% higher than before the pandemic, with some regions registering much larger gains.

The tendency of people to seek more space in rural and suburban areas has also helped boost the housing market.

Robert Gardner, Nationwide’s chief economist, said the August rebound was surprising and may have been boosted by continued strong demand for properties priced between £ 125,000 and £ 250,000.

In England and Northern Ireland, the ‘zero rate’ range has been reduced from £ 500,000 to £ 250,000 from July and will fall back to its pre-pandemic level of £ 125,000 on October 1.

Mr Gardner continued, “Lack of supply is also likely to be a key factor in the August price hike, with realtors reporting low property counts on their books.”

Looking ahead, he said: “Underlying demand is expected to weaken early in the year if unemployment rises, as most analysts expect, when government support programs end.

“But even that is far from certain. The labor market has remained remarkably resilient to this day and, although it is weakening, it is possible that changes in housing preferences following the pandemic will continue to support activity for some time. Again. “

Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said: “Mortgage rates have fallen sharply in recent weeks and still have room, while high levels of vacancies suggest that the upheaval in employment in the fourth quarter will be limited and reversed in subsequent quarters.

“As a result, we believe house prices will pick up in 2022, ending the year about 4% higher than at the end of 2021.”

Martin Beck, Senior Economic Advisor for the EY Item Club, said: “Buyers queuing for transactions and looking for a lower tax bill before the October deadline (stamp duty holiday) may -be sustained demand and prices in August.

“Other factors also played a role in the price increase in August, and these are expected to persist for the foreseeable future.

“Consumer confidence remained high and buyers continued to benefit from ultra-low mortgage rates. “

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This notice was published: 2021-09-01 11:49:50

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