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- UK house prices rebound further to reach record high
UK house prices rebound further to reach record high
According to the report from Halifax Bank of Scotland, on a monthly basis, UK house prices in August were 1.6% higher than in July. In the latest quarter (June to August) house prices were 1.3% higher than in the preceding three months (March to May)
House prices in August were 5.2% higher than in the same month a year earlier. Uncertainty remains with likely greater downward pressure on prices in the medium term
Russell Galley, Managing Director, Halifax, said: “House prices continued to beat expectations in August, with prices again rising sharply, up by 1.6% on a monthly basis. Annual growth now stands at 5.2%, its strongest level since late 2016, with the average price of a property tipping over £245,000 for the first time on record. A surge in market activity has driven up house prices through the post-lockdown summer period, fuelled by the release of pent-up demand, a strong desire amongst some buyers to move to bigger properties, and of course the temporary cut to stamp duty. Notwithstanding the various positive factors supporting the market in the short-term, it remains highly unlikely that this level of price inflation will be sustained. The macroeconomic picture in the UK should become clearer over the next few months as various Government support measures come to an end, and the true scale of the impact of the pandemic on the labour market becomes apparent".
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