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Home > News > Record house price high - Halifax | Plaza Estates London

Record house price high

By Maurice Shasha  //  Tue 15th September 2020
Estate agents have also reported a large increase in buyers looking for bigger properties with outdoor space following lockdown.
Estate agents have also reported a large increase in buyers looking for bigger properties with outdo
UK house prices rose to a record high in August, according to data from high street mortgage lenders.

Month-on-month figures from the Halifax show a rise of 1.6%, meaning that house prices were up by 5.2% on last year. The previous quarter (June to August) saw prices 1.3% higher than in the preceding three months.

The rise follows a surge in demand for property once the housing market reopened after lockdown. Another factor is the stamp duty holiday, announced by the Chancellor, Rishi Sunak in his July statement. The move increased the threshold at which buyers pay stamp duty land tax from £125,000 to £500,000 until the end of March - saving them up to £15,000.

Estate agents have also reported a large increase in buyers looking for bigger properties with outdoor space following lockdown.

Halifax managing director Russell Galley said: “House prices continued to beat expectations in August, with prices again rising sharply, up by 1.6% on a monthly basis. Annual growth now stands at 5.2%, its strongest level since late 2016, with the average price of a property tipping over £245,000 for the first time on record.

“A surge in market activity has driven up house prices through the post-lockdown summer period, fuelled by the release of pent-up demand, a strong desire amongst some buyers to move to bigger properties, and of course the temporary cut to stamp duty.”

The Nationwide building society has also reported a 2% jump in UK house prices in August, taking them to an all-time high.

However, the Halifax warns of likely downward pressure on prices in the medium term, following a predicted recession and rise in unemployment.

Read more about this story in City AM.

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