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House prices hit record high – again!

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Property prices are being pushed up by strong demand and limited supply
House prices hit record high – again!

House prices in April topped the record high set in March, as the market maintained its recent momentum, said Halifax.

The average property is now worth £258,204, up 1.4% month on month and 8.2% annually, the highest annual growth rate in five years.

Almost £20,000 has been added to the value of the average home since the market came to a standstill in April 2020.

Russell Galley, managing director of Halifax, said: “The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the Government scheme.

“The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market.

“However, we do expect recent levels of activity to be sustained over the short-term as buyers continue to search for homes with more space and potentially better suited for their new working patterns.”

Sundeep Patel, director of sales at lender Together, added: “Buyers racing to beat the Stamp Duty holiday amid record-low interest rates continued to drive up sales last month.

“However, we are about to go through some significant changes over the next couple of months as we tiptoe back to normality. With the end of the £500K taper for Stamp Duty in June – and mortgage holidays winding up in July – we may see demand become slightly more subdued over the summer, as people think twice about the cost of moving as Government support starts to be withdrawn.

“There may also be a dip in activity during this period as people put on hold their moving plans in favour of foreign travel following the Government’s announcement of the ‘green list’ of international travel destinations.

“Only time will tell if house prices have been artificially inflated, or if we will continue to see growth throughout the rest of this year.”

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