The monthly Halifax House Price Index has revealed that the average UK house price is now over 8% higher than in 2020.
Figures from the UK’s longest-running monthly house price series revealed that as of April 2021, the average house price across the UK now stands at £258,204, making for an 8.2% increase compared to April 2020.
The pandemic and the resulting Stamp Duty Holiday has caused figures to spiral over the past 12 months as the demand for housing continues to rise.
Recent data from the HMRC show that property transactions were up a staggering 102.4% (a total of 190,980 transactions) in March compared to 2020.
Commenting on the report, Russell Galley, Halifax Managing Director, said: “The average property is now worth £258,204, up 1.4% month on month and 8.2% annually, the highest annual growth rate in 5 years. In cash terms, almost £20,000 has been added to the value of the average home since the market had essentially come to a standstill in April 2020.
“The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the Government scheme. The influence of the Stamp Duty Holiday will fade gradually over the coming months as it’s tapered out, but low stock levels, low-interest rates, and continued demand is likely to continue to underpin prices in the market.
“However, we do expect recent levels of activity to be sustained over the short-term as buyers continue to search for homes with more space and potentially better suited for their new working patterns. Savings built up over the months in lockdown have given some buyers, even more cash to invest in their dream properties, while the new mortgage guarantee scheme may have eased deposit constraints for some prospective homebuyers who previously thought their first step on the housing ladder was a few years away.”
Looking to buy a property before figures rise even higher? Why not take a look at our guide to see if buying a house is the right move for you?