Average property price at record levels
The average price of a UK home is at record high levels
In March, the average price of a UK home jumped a further 1.1% to a record high of £254,606 as government measures to support the market continue to drive interest from buyers.
The data from Halifax shows that since March 2020, house prices have risen by 6.5%, or roughly £15,430 in cash terms. This stems from there being more buyers than sellers, and thus more competition for property, which has led to an increase in property price.
Russell Galley, the managing director of Halifax, said the housing market had “enjoyed something of a resurgence during March”.
“Casting our minds back 12 months, few could have predicted quite how well the housing market would ride out the impact of the pandemic so far, let alone post growth of more than £1,000 per month on average.”
Early last month, the chancellor, Rishi Sunak, announced an extension to the Stamp Duty Holiday and launched a guarantee scheme to bring back 95% mortgages.
Galley continued, “The continuation of government support measures has been key in boosting confidence in the housing market. The extended stamp duty holiday has put another spring in the step of home movers, while for those saving hard to buy their first home, the new mortgage guarantee scheme provides an alternative route on to the property ladder.”
Andrew Wishart, a property economist at the consultancy Capital Economics, said the March increase recorded by Halifax was likely to mark the start of a strong summer.
He added: “The reimposition of stamp duty and the end of the furlough scheme will eventually cool the market towards the end of the year. But continued low interest rates, good mortgage affordability, and a strong economic rebound should prevent the boom being followed by a bust.”