UK house prices hit significant record

According to the UK’s largest mortgage lender, Halifax, house prices in the UK hit a significant record during August but the yearly growth pace in property values slowed.

Last month, the average cost of a home increased by 0.7 per cent to £262,954.

From the start of 2021 until August 2021, UK house prices increased by 7.1 per cent but this was down from July’s rate of 7.6 per cent.

Halifax’s Managing Director, Russell Galley, commented on the figures saying, “Given the rapid gains seen over the past 12 months, August’s rise was relatively modest and, the annual rate of house price inflation continued to slow.”

He also said that other economic factors contributed positively to the housing market, such as high employment vacancies and the return of consumer confidence.

According to Galley, the Stamp Duty Holiday (SDH), aimed to help support the housing market during the pandemic, is no longer influencing the market significantly. (The SDH runs out at the end of September.)

The record buyer seems to be fuelled by a demand for extra space as employees work from home.

“These trends look set to persist and, the price gains made since the start of the pandemic are unlikely to be reversed once the remaining tax break comes to an end later this month,” continued Mr Galley.

Nationwide Building Society provided even stronger figures for the housing market at the start of September. The financial institution revealed that house prices increased by 2.1 per cent in August compared to July – which meant as of August 2021, house prices rose 11 per cent over the last year.

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