According to the latest data from both Nationwide and Halifax, house prices have continued their post-lockdown recovery, reaching their highest monthly rise in August for more than 16 years.
The research by Nationwide found that prices rose by 2 per cent in August compared to July or 3.7 per cent compared to a year ago, highlighting a rapid recovery for properties since lockdown restrictions were eased.
The increase represents the highest since February 2004 when property prices increased by 2.7 per cent, with the average house price now standing at £224,123.
Experts believe this can be attributed to several factors, including the release of built-up demand following the coronavirus lockdown, as well as many people reassessing their living situation after spending an increased amount of time at home.
It is also thought that the stamp duty holiday announced by the Government in July will have played a key role in the market upturn, with many being encouraged to take advantage of the incentive.
The news, however, may represent a challenge for first-time buyers, with many lenders tightening their criteria for offering a loan, with larger deposits required to get onto the property ladder.
Nationwide’s Chief Economist Robert Gardner 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.”
For help and advice, contact our expert team today.
Latest posts by Gunduz Misiri (see all)
- Property: House prices rise to a 16-year high in August - September 11, 2020
- HM Land registry set to accept digital signatures - July 15, 2020