House prices up 7.1% in year to April
Average UK property prices rose to a new record high of £238,831, up £15,916 over the past 12 months, according to Nationwide.
The building society said that annual house price growth accelerated to 7.1% in April, up from 5.7% in March.
House prices rose by 2.1% in April alone, the biggest month rise since February 2004.
Robert Gardner, Nationwide’s chief economist, said: “Just as expectations of the end of the stamp duty holiday led to a slowdown in house price growth in March, so the extension of the stamp duty holiday in the Budget prompted a reacceleration in April.
“With the stock of homes on the market relatively constrained, there is scope for annual house price growth to accelerate further in the coming months, especially given the low base for comparison in early summer last year.
“Indeed, if house prices remain flat in month-on-month terms over the next two months, the annual rate of growth will reach double digits in June.”
Iain McKenzie, CEO of The Guild of Property Professionals, added: “What goes up must come down, says the old adage, but nobody seems to have told the property market.
“The stamp duty holiday kickstarted this property boom in July, but the explosion in prices has been fueled by a whole nation reassessing where they want to live, and this movement shows no sign of slowing.
“The combination of high demand and low supply could create the conditions for a housing super-boom the likes of which we haven’t seen since the early 2000s.”