UK annual house price growth rises to 11%
The average UK house price rose by 2.1 per cent in August to reach £248,857, said Nationwide.
That’s the second largest gain in the last 15 years.
Prices have increased by 11 per cent in the last year, according to the building society.
The lender also noted that house prices are now around 13% higher than when the pandemic began.
Robert Gardner, Nationwide’s chief economist, said: “The bounce back in August is surprising because it seemed more likely that the tapering of stamp duty relief in England at the end of June would take some of the heat out of the market.
“The strength may reflect strong demand from those buying a property priced between £125,000 and £250,000 who are looking to take advantage of the stamp duty relief in place until the end of September, though the maximum savings are substantially lower.
“Lack of supply is also likely to be a key factor behind August’s price increase, with estate agents reporting low numbers of properties on their books.”
Nicky Stevenson, managing director at Fine & Country, added: “This latest spike is stunning given that most analysts expected prices to decelerate as the stamp duty holiday entered its final throes going into the autumn.
“Those forecasts have now all proved wrong, and after a bumper summer which featured record borrowing, growth in Britain’s housing market still shows no sign of dampening.
“While the stamp duty holiday savings on big homes is quickly vanishing, a greater proportion of market activity is now in the mass market sector, buoyed by the resurgence of buy-to-let investing and first-time buyers.
“It is these sectors that continue to power double digit growth across the country.
“Based on this latest data, the market may well be running red-hot for some time to come, fuelled by low cost of borrowing, shrinking housing supply and government incentive schemes for first time buyers.
“The boom goes on.”