‘The most recent surge is breathtaking!’ House prices have risen for the second time in 15 months.
According to the most current Nationwide house price index, house price rise jumped to 11% in August from 10.5 percent in July. After April’s 2.3 percent increase, August had the second-largest monthly gain in 15 years. The latest price increase has been dubbed “shocking” and “crazy” by real estate professionals.
After a brief dip in July, house prices rebounded in August. Prices have risen by 2.1 percent month over month, with overall prices roughly 13 percent higher than when the pandemic began. Property experts predicted that the stamp duty holiday will be phased out at the end of June, slowing the market.
The recent price increase could be due to increased demand from buyers of homes valued between £125,000 and £250,000, where the stamp duty holiday is still in effect until the end of the month.
Buyers wanting to buy a home in this price range can save up to £2,500.
The average house price in the UK is currently £248,857, edging closer to £250,000.
“Underlying demand is likely to remain healthy in the near term,” said Nationwide Chief Economist Robert Gardner.
Housing supply remains low, according to the property expert, which will likely support house prices even more.
Mr Gardner, on the other hand, warned that the conclusion of the year is “harder to predict.”
“Activity would almost surely weaken for a while once the stamp duty holiday expires at the end of September, given the incentive for consumers to push their purchases forward to avoid the additional tax,” he stated.
“Moreover, underlying demand is likely to decrease at the turn of the year if unemployment rises, as most analysts forecast, as government support schemes wind down, as most analysts expect.
“However, even this is far from certain. To now, the labor market has proven to be remarkably durable, and even if it does deteriorate, alterations in housing choices as a result of the pandemic have the potential to sustain activity for some time.”
Despite the government’s effort to go green, energy efficiency ratings are having a limited impact on property values.
If the UK is to fulfill its 2050 emission targets, Mr Gardner believes the housing stock must be “decarbonised” and “adapted.”
Currently, the housing stock in the United Kingdom accounts for roughly 15% of the country’s overall carbon emissions.
Energy efficiency scores from energy performance certificates were the subject of a special report produced by Nationwide. “Brinkwire News in Condensed Form.”