UK house prices have clawed back their lockdown losses to hit a new record high, with homeworkers demanding more space, a release of pent-up demand and a stamp duty cut all playing a role in the rise.
Nationwide building society said August brought the highest monthly price rise for 16 years, defying the economic crisis caused by the coronavirus pandemic as the average price of a property rose 2% from the previous month to £224,123.
The lender cited “behavioural shifts” as a possible factor, as prospective buyers reassessed their housing wants and needs due to remote working.
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 Rishi Sunak’s stamp duty holiday affecting properties up to £500,000 in England and Northern Ireland.
Source: The Guardian