UK house prices hit all-time high
UK property prices are at an all-time high. Picture: Getty Images/iStockphoto - Credit: Getty Images/iStockphoto
UK house prices reached an all-time high last month, with Nationwide recording the largest monthly increase in 16 years.
The average UK property price now stands at £224,123, up 2 per cent month-on-month and 3.7 per cent year-on-year.
Robert Gardner, Nationwide’s chief economist, said: “House prices have now reversed the losses recorded in May and June and are at a new all-time high.
“The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.”
Gardner credited pent up demand and behavioural shifts brought on by life in lockdown for the rebound.
You may also want to watch:
He added: “These trends look set to continue in the near term, further boosted by the recently announced stamp duty holiday, which will serve to bring some activity forward.
“However, most forecasters expect labour market conditions to weaken significantly in the quarters ahead as a result of the after-effects of the pandemic and as government support schemes wind down.
Most Read
- 1 Major redevelopment underway at listed former offices in St Albans
- 2 Punch Taverns calls time on White Lion pub team
- 3 April 12: Your guide to what can open from Monday when COVID lockdown rules ease
- 4 Call from St Albans Museum for start of Ramadan
- 5 Drug users at Telford Court flats face tough police action
- 6 What are our district's cases like now lockdown restrictions have eased?
- 7 What are the district's best pub gardens to visit from April 12?
- 8 Flashmob celebrates re-opening of St Albans high street
- 9 Police hunt man suspected of breaking into Cathedral collection boxes
- 10 St Albans GP publishes guide to living
“If this comes to pass, it would likely dampen housing activity once again in the quarters ahead.”
Andrew Montlake, managing director of mortgage broker Coreco, agreed. He said: “Two words: reality check. As strong as the property market is right now, it will not last.
“Demand is understandably strong after lockdown and the added bonus of the stamp duty holiday, but unemployment is rising by the day and the economic outlook is highly uncertain as the furlough scheme ends.
“In the final months of the year we will start to see a reversal in the current rate of house price growth.”