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UK house prices hit all-time high

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07/08/2020
A sharp increase in July has pushed average property prices to the highest level ever recorded, said the country's largest lender
UK house prices hit all-time high

House prices rose by 1.6% in July, taking the average UK property price to £241,604 – a record high for Halifax’s house price index.

Following four months of decline, the surprise mini-boom in July was the greatest month-on-month increase this year, comfortably offsetting losses in 2020.

The lender said that, over the last year house prices have risen by 3.8%, despite a slight dip in the second quarter of this year as a result of the pandemic.

Trouble ahead?

However, the future remains uncertain with some property price falls expected over the medium term, explained Russell Galley, managing director of Halifax: “There is still a great deal of uncertainty around the lasting impact of the pandemic. As government support measures come to an end, the resulting impact on the macroeconomic environment, and in turn the housing market, will start to become more apparent.

“In particular, a weakening in labour market conditions would lead us to expect greater downward pressure on prices in the medium-term.”

Andrew Montlake, managing director at mortgage broker, added: “The mini-boom is real, but so are fears of a maxi-bust.

“Prices and activity are holding up well for now as the post-lockdown surge continues, but everyone knows that the Autumn is when we will see the real impact of Covid-19 on the economy.

“The Government has a phenomenal task ahead to keep people in jobs, which will clearly determine the direction of house prices in the short to medium-term.”

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