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UK house prices ‘likely to keep rising despite hitting record high’


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https://www.theguardian.com/money/2021/jun/07/uk-house-prices-rising-record-halifaxstamp-duty-deadline

 

House prices are likely to continue rising for some time despite hitting a new record high in May, one of Britain’s biggest mortgage lenders has said.

The monthly snapshot of the property market from Halifax showed a 1.3% jump in the cost of a home in May, taking the average selling price to a record £261,743 as homebuyers raced to complete purchases before the stamp duty holiday begins to run down at the end of this month.

 

Halifax said almost £22,000 had been added to the average house price since May 2020, when the UK experienced the first easing of national lockdown restrictions, and the gradual reopening of the housing market after a temporary freeze. It marks a 9.5% annual increase, the fastest rate of growth in seven years.

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He said prices could continue to rise after the end of June, given that some Britons had built up “unexpected” savings during lockdown that could now be used to fund larger deposits on bigger properties.

That's it? That's the reason prices will continue to rise after the stamp duty holiday? Oh my. 

Anyone who had unexpected savings is already, right now, sinking it into property in a rush to beat the deadline and factored the saving into their offer. They're not going to shrug and pay more in October just because. 

I've no doubt that WFH savings and stamp duty holiday is creating this current boom, but it seems naive to assume price momentum will continue after the holiday is over and people are back in the office.

The same could be said about the 2nd home surcharge in 2016. Sales soared just before it was due to come in and, (instead of continuing their upward trend) tanked afterwards. That time only impacted a small segment of buyers, whereas this time it impacts all non-FTBers, and even some dippy FTBers are rushing if MSE and Mumsnet are to be believed. 

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