By Jay Tavares
House prices across the UK have increased in the last year – with the spike brought on by those wanting to move following the nationwide lockdown figures have revealed.
According to Nationwide, house prices hit a record high in August. The average UK house will now set you back £224,123, up 3.7% on the same month last year (yes, the idea of an “average” UK house is a laughable notion, but we need some way of measuring these things).
The latest numbers from HM Land Registry reveal a 2.9 per cent increase in May 2020 vs May 2019 – an increase from the 2.7 per cent annualised figure last time reflecting actual home sale completions across the board as registered with HM Land Registry.
A good section of the British public have been moving out of cities into the countryside in a panic, motivated by fear of another city centre lockdown. Speculation of a second wave of Covid-19 is massively influencing the decision for many home owners and home buyers to change location and move somewhere they believe would is less likely to be prone to the spread of the virus.
The good news is for home owners who want to sell. House prices are up after fluctuating for the past year.
CEO of OpenBrix, Adam Piggot, said: “Delighted to see two positive sets of market analysis with property values reaching new heights, which is an impressive effort, all things considered.
“Rishi Sunak’s shot in the arm for the housing market has certainly worked yet we must also be cautious of the outlook for a runaway market given that the end of his Stamp Duty benevolence is just six months away.
“If the economy isn’t in better shape come this point, it could be a hard-stop for house price growth.”
Founder and CEO of GetAgent.co.uk, Colby Short, added: “These fresh stats reinforce the positive numbers that have been emanating from the high street lenders in recent weeks.
“It seems that the only way is up for house prices with a 2.9 per cent year on year increase, smack bang in the middle of a once in a century pandemic. Who would have thought?
“Well, the majority of the industry actually. We have more faith in the resilience of the UK housing market than most given that owning a home remains a key aspiration in British culture.
“Not even a global virus can keep the resolve of Britain’s homebuyers at bay”
Managing Director of Barrows and Forrester, James Forrester, said: “A significant hike in house prices and so quickly despite so many experts calling the death of the UK housing market. Well, those so-called experts look a tad stupid now, don’t they?
“Of course, it is early days but such a dramatic change in the landscape speaks volumes about the resilience of the UK property market.
“Those economists and such like that seek to bolster their credentials by spouting unfounded prophecies of doom, as they have repeatedly done over so many things in recent years not least Brexit, should take a good look at the housing stats and then take a good look at themselves.
“The property market is one of the cornerstones of the UK economy and to continuously talk it into the ground for no other reason than to gain column inches is irresponsible, to say the least.
“Luckily the facts and the current reality we’re seeing on the ground paint a very contrasting picture.”