House Prices Increase In The Covid Climate
The coronavirus pandemic was always going to impact the property market, but it’s not been clear exactly how things would shift and shape as the situation unfolded across the world. But it’s now been reported that house prices in the UK have increased and hit a record high last month, with the average price of a property rising beyond £245,000.
A report by Halifax, part of the Lloyds Banking Group, stated that this strong price growth would be unlikely to continue as unemployment rates increased and household earnings decreased due to the Covid-19 pandemic.
In August this year the average price of a home rode by 1.6% from July to £245,747 said Halifax in its monthly house price report.
“A surge in market activity has driven up house prices through the post-lockdown summer period,” said Russell Galley, Halifax’s Managing Director, “which was fuelled by the release of pent-up demand, a strong desire among some buyers to move to bigger properties, and of course the temporary cut to stamp duty.”
The Halifax figures follow a report by Nationwide Building Society, with house prices up 2% to £224,123 on its index.
There have also been estate agent reports that state that buyers are now looking for bigger properties to accommodate homeworking—a new necessity and trend as the result of social distancing during coronavirus times—with coastal and country homes being in particularly high demand.
The property market may be shifting and shaping through the coronavirus pandemic, but we can advise you on all elements of property finance in the UK. If you want to find out more, contact one of our experts today.