House costs hit a brand new all time excessive in July because the property market step by step reopened, after being placed on pause through the coronavirus lockdown.
According to the most recent Halifax House Price Index the typical worth of a house was £241,604 final month, 1.7% larger than June’s £237,834.
Prices are 3.8% larger than July 2019.
Halifax managing director Russell Galley mentioned pent-up demand and a scarcity of obtainable homes had mixed to push up costs.
The authorities’s minimize in stamp obligation had additionally boosted consumers’ enthusiasm, he mentioned.
Last month Chancellor Rishi Sunak introduced a brief suspension of stamp obligation on property gross sales as much as £500,000 in England and Northern Ireland.
These newest figures mirror current figures from the Nationwide Building Society, which confirmed home costs bounced again in July, climbing 1.7% through the month.
“The newest information provides to the rising view that the market is experiencing a stunning spike publish lockdown,” mentioned Mr Galley.
But he warned that whereas the prospects for the housing market had been brighter than may need been anticipated three months in the past, the consequences of the pandemic had been nonetheless creating a substantial amount of long-term uncertainty.
“As authorities assist measures come to an finish, the ensuing affect on the macroeconomic setting, and in flip the housing market, will begin to turn into extra obvious,” he added.
This view was echoed by Anna Clare Harper, writer of Strategic Property Review, who mentioned that the Halifax findings mirrored present confidence within the financial system:
“What we will not forecast is what occurs subsequent: economically, and in coverage.
“What we will predict precisely is that these two elements will show elementary to the way forward for the UK housing market.”, she mentioned.
Another property specialist, Tomer Aboody, director of MT Finance, referred to as on the federal government to think about additional Mini stamp obligation aid on properties promoting for greater than £500,000 as he burdened the significance of the sector to the UK financial system.
“Now greater than ever the housing trade must be regarded upon as the inspiration upon which to maintain the UK working.”