According to the Guardian, there was a 1.6 per cent increase month-on-month, even while the UK is now in its most severe recession in recent history.
Halifax’s monthly House Prices Index report shows that house prices have rocketed by 5.2 per cent compared to figures from August 2019.
Managing director Russell Galley suggested that the increase has been “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”.
Mortgage rivals Nationwide have also confirmed the increase, saying that property prices had shot up by 2 per cent in August, reaching an all-time high, meaning the average UK property now costing over £245,000. This is excellent news for those currently selling their homes, but certainly not as welcomed by first-time buyers struggling to get on the property ladder.
Galley warned that the increase would be ‘unlikely’ to continue in the medium term: “The macroeconomic picture in the UK should become clearer over the next few months as various government support measures come to an end,” he said.
He also noted that the true impact of the pandemic on employment figures will not become clear until the end of the government’s furlough scheme in October, at which point experts are predicting a severe rise in unemployment, which will apply downward pressure on house prices.
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