UK house prices surged at the fastest pace in 16 years in August as strong demand pushed the cost of an average home to a record high, defying the economic crisis caused by the coronavirus pandemic.
The average house price soared to £224,123 in August, the highest on record, according to data from Nationwide building society. Prices rose by 2% during the month, the fastest rate of increase since February 2004.
Over the past 12 months prices have jumped by 3.7% despite the UK suffering the deepest recession since records began after unprecedented restrictions on movement. That same 12-month period also included prolonged uncertainty over when and how the UK would leave the EU, as well as a general election.
However, a number of factors have come together to prevent major house price falls since the market was allowed to restart in May, including pent-up demand and the chancellor Rishi Sunak’s stamp duty holiday, which means buyers in England and Northern Ireland do not pay the tax on purchases worth less than £500,000 until 1 April 2021. Different rates and thresholds apply in Scotland and Wales.
Source: The Guardian