House prices bounce back as high demand boosts market
House price growth rebounded in July as activity bounced back, said Nationwide.
The building society recorded annual house price growth of 1.5% and a 1.7% jump in prices compared to June.
This takes the average UK property price to £220,936.
Stamp Duty boost
The Stamp Duty holiday on properties up to £500,000 has helped boost demand and should support house prices over the short-term, said the lender.
Robert Gardner, Nationwide’s chief economist, said: “The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions.
“Pent up demand is coming through, where decisions taken to move before lockdown are progressing.
“Moreover, social distancing does not appear to be having as much of a chilling effect as we might have feared, at least at this stage.
“These trends look set to continue in the near term, further boosted by the recently announced stamp duty holiday, which will serve to bring some activity forward.”
Paresh Raja, CEO of Market Financial Solutions, added: “July’s house price index is positive but is nothing out of the ordinary.
“One thing we need to consider is whether this rise in house prices will in fact make property less accessible for more buyers during this pivotal recovery period.
“Lenders are returning to the market, but getting a mortgage is still by no means a simple process. With house prices rising, it could make property unaffordable for certain categories of buyers who cannot access the necessary finance.”