House prices in the UK are increasing at their fastest rate in five years. This is the finding of the monthly snapshot of the property market by Halifax.
Halifax’s latest property price index shows that in April this year, the average cost of a home jumped by 1.4%, taking the average selling price of property in Britain to just over £258,000.
According to Halifax, around £20,000 has been added to the average house price since April 2020, when the industry came to a standstill.
Halifax says it expects demand for property to remain strong in forthcoming months, despite the stamp duty holiday being phased out in two stages, firstly in June and secondly in September. The lender also attributed the surge in activity in the property market to savings people had made during lockdown, saying buyers have more cash to invest in their “dream properties.”
Another reason is diminishing of deposit constraints, with prospective buyers now finding it easier to purchase a home.
Russell Galley, managing director at Halifax, commented on today’s buoyant property market.
“The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the government scheme.
“The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market,” Galley continued.
Halifax’s property industry index follows a series of reports that show strong demand for property in the UK. One such report is HMRC’s monthly property transactions data, which shows property sales in Britain increased in March 2021 to their highest ever level.
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